Did you know that 50% of marriages in this country end in divorce?  Subsequent marriage divorce rates are even higher; 60% for second marriages and 73% for third marriages. These statistics cannot be ignored. So how do you protect your child’s inheritance from divorce? You should consider proper estate planning.   

Although New York State law does consider an inheritance “separate property” in the event of marital dissolution, this law should not be solely relied upon. If, for example, your child inherits $250,000, and keeps those funds segregated from their spouse, it should not be included as part of a divorce settlement. However, if your child creates a joint account with their spouse and deposits (some or) all of the funds, the otherwise separate property has now been inadvertently converted to marital property and is subject to the equitable distribution formula. Similarly, if you leave your summer home to your daughter, even if she retains the deed in her name alone, her spouse may have helped to improve the property by installing windows, re-tiling the bathroom, planting a garden, etc. This property may now be considered co-mingled with marital property and included as a marital asset in their divorce. 

In meeting with clients, a common consensus is that most of them do not want their hard-earned money passing to their child’s spouse. Although at this time, you may have a harmonious relationship with your child’s spouse, that can easily and rapidly sour. In addition, if your child’s spouse remarries, your funds may be used for them to start a new life … without your child.  Sentimental family heirlooms such as jewelry and artwork are some tangible items that a parent may want to safeguard to ensure that it remains in their direct bloodline and are passed down to future generations. 

A continuación se exponen algunas estrategias sencillas de planificación patrimonial para proteger la herencia de sus hijos de consecuencias imprevistas:

Acuerdo prenupcial

Un acuerdo prenupcial es un contrato entre dos partes antes de casarse. Identifica los bienes de cada parte al contraer matrimonio. Especifica cómo se dividen los bienes (incluida la herencia) en caso de separación matrimonial, disolución y fallecimiento. Debe instar a su hijo a que obtenga un acuerdo prenupcial antes de casarse y a que consulte con un abogado especializado en planificación patrimonial cuando reciba una herencia, para planificar la protección de sus bienes.

Fideicomiso vitalicio

This Trust is also sometimes referred to as a “Safe Trust” or “Inheritance Trust”.  A great option is for you to create a lifetime trust for your child in your Last Will & Testament or Trust. Income and/or Principal would be available to provide your child with funds necessary to support their Health, Education, Maintenance, and Support (HEMS) for his/her lifetime. Additional flexible provisions can also be included to provide for luxury items and general happiness. If any funds are remaining upon the death of your child, you can still control the disposition by naming a remainder beneficiary (i.e- your grandchildren). An added benefit to this structure is that while the funds are held in Trust, the corpus is also insulated from any of your child’s creditors. 

Si no le gusta la idea de que su hijo no reciba los fondos en su totalidad durante su vida, otra opción es escalonar una distribución del capital a su hijo en etapas (es decir, 1/3rd del capital a los 30 años, la mitad del capital restante a los 40 años y el resto a los 50 años). Sin embargo, una vez efectuada la distribución, esa suma estará sujeta a las cuestiones matrimoniales y de acreedores de su hijo.

Sociedades de responsabilidad limitada (SRL)

The creation of an entity may also be a planning strategy for investment real estate properties. In this instance, your child may be named as a member of the LLC rather than a titleholder on the deed. 

The reality is… divorce happens! As a parent, you have protected your child from others since birth and proper estate planning can extend monetary protection for their entire lifetime. It is equally important for you to preserve your own legacy for your descendants.  Please contact us to discuss a specifically tailored plan to meet your family’s needs.