Inheritance & Divorce: Avoiding the Unthinkable

Leaving an inheritance to a child, grandchild or a loved one is a gracious gift and is part of leaving a legacy in which you can be proud. But what if, after your loved one receives their inheritance, they get divorced?

In many Last Will & Testaments, testators will leave their assets outright to their children or loved ones. That means that the entire distribution or gift is theirs without any restriction. The beneficiary can add the inheritance to his or her own bank account or investment account.

If the beneficiary is married, we often see the inheritance or at least part of it go into a joint bank account or see it used towards purchasing a home with the spouse as joint owner. 

If ever there is a divorce, the beneficiary will potentially lose 50% of the inheritance that you left him or her. Over 50% of marriages end in divorce!

There are better ways to leave a gift to a loved one to ensure protection against divorce, creditors, bankruptcy, etc. that don’t require sever restrictions on how and when the beneficiary can utilize the inheritance. By using certain kinds of trusts, you can ensure that you leave a positive legacy no matter what the circumstance is in the future. 

For more information about better ways to leave an inheritance, contact your attorney today. If you are in Pennsylvania, you can contact my firm at (215) 706-0200 for a complimentary consultation.