It’s a godsend to have the chance to pass on considerable assets to your children – and it’s probably one of the reasons you worked so hard and saved so diligently during your life. It’s normal to want to keep your wealth within your family, particularly as we find ourselves living through economically uncertainty. Although you may love your daughter or son-in-law very much, present world events have let us know that you can’t predict what the future might bring. This could lead to many people wondering if there’s a way to bequeath money to their children devoid of passing any rights on to the spouses of their children.
Usually, after you pass assets to your children unmitigated, their spouses are going to have equal rights to those assets. If you have positive relationships among their spouses, it’s normal to feel somewhat guilty about attempting to avoid passing on any rights of your wealth. Nevertheless, if you feel adamant about retaining your financial legacy for your children, there are ways to accomplish this.
Creating a trust is one of the most general ways to shield your assets, and it’s simple to do. When you want to bequeath money to your children today, you could devise the trust now. When you want to wait until you’ve passed away, the trust could be created through your will and go into effect at a later time.
Trusts are very adaptable – it can receive investment assets, in addition to being named the beneficiary of assets such as your retirement accounts or life insurance. You are able set the conditions of the trust to direct precisely how much income or capital should be allocated to your children. You are able to even direct the trustee to pay out only expenses for your children instead of allocating cash, in which is going to protect against their spouses gaining access to cash allocations.
Historically, there has been somewhat of a shame when signing prenuptial agreements. However, increasingly number of Millennials are opting to sign a prenup. Not only do prenups document and verify the assets each one of the spouses brings into the marriage, but they specify what happens to assets that could be inherited someday. When you know your plans prior to your children getting married, as well as the wealth you are planning to bequeath to them in their prenuptial agreements is going to guarantee the money will stay with them.
So, what happens when it’s too late to get your children to sign a prenup? Postnuptial agreements enable you to achieve the same peace of mind concerning the future allocation of your assets, but they are put in place following your children have already got married. This may make for an uncomfortable discussion, and there is the possibility for it to create some bad emotions throughout the family. Nevertheless, when you feel adamant about retaining your wealth with your children, it may be worth the risk to guarantee your estate plans are carried out in accordance with your wishes.
Estate planning is about taking steps presently to guarantee you can manage the future allocation of your assets. Despite your relationships with your children’s spouses, it’s not uncommon to want to guarantee your wealth stays with your children. As you mull over your options, including those aforementioned, it’s a good idea to enlist the counsel of a qualified attorney to make your estate documents are correctly prepared to fulfill your wishes.
How to Begin With Legacy Planning
Generally, the first step to any legacy planning method is to collect information. You will want to create a list of each of your assets and where they’re located. That can comprise of everything from brokerage accounts to actual real estate to insurance policies.
Admin. (2020, August 21). Estate planning: Keeping your legacy in the family. Retrieved April 12, 2021, from https://pacesferrywealth.com/estate-planning-keeping-your-legacy-in-the-family/
Arizona Family Law
Naming guardians in your will can be part of your estate plan. You may think you’re too young or don’t have enough money to justify the expense, but if you have children, you have priceless assets. There are many considerations when naming guardians for your kids. However, the process doesn’t have to be expensive or complicated.
There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.