• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sinclair Prosser Gasior

Annapolis Estate Planning Attorneys

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Call Now: (410) 573-4818

Attend a Free Workshop Trustee School

  • Home
  • About Our Firm
    • About Our Firm
    • Founding Attorneys
    • Meet Our Team
  • Services
    • Annapolis, MD Asset Protection and Business Planning
    • Estate and Gift Tax Figures
    • Annapolis, MD Elder Law & Medicaid Services
    • Annapolis, MD Trust Administration & Probate
    • Family-Owned Businesses & Farms
    • Annapolis, MD Incapacity Planning
    • Annapolis, MD LGBTQ Estate Planning
    • Annapolis, MD Pet Planning
    • SECURE Act
    • Annapolis, MD Special Needs Planning
    • Estate Planning for Young Families
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Definitions
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Asset Protection Planning
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Power of Attorney
      • Probate Avoidance
      • Trust Administration & Probate
      • Wills
    • Is Your Estate Plan Outdated?
    • Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Trust Administration
      • Estate Planning for Niches
    • Top 10 Estate Planning Techniques
    • Newsletters
  • COMMUNITIES WE SERVE
    • Anne Arundel County
      • Annapolis
      • Crownsville
      • Davidsonville
      • Highland Beach
      • Millersville
    • Baltimore County
    • Calvert County
      • Dunkirk
      • Huntingtown
      • Owings
    • Charles County
      • Charlotte Hall
      • Waldorf
    • District of Columbia
    • Howard County
    • Maryland
      • Clarksville
      • Columbia
      • Ellicott City
    • Prince George County
      • Bowie
      • Fort Washington
      • Glenn Dale
    • Queen Anne’s County
      • Grasonville
      • Queenstown
      • Stevensville
    • St. Mary’s County
      • Charlotte Hall
      • Leonardtown
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
  • Make A Payment
  • Client Portal
Home / Divorce Protection / Protecting Your Child’s Inheritance from Divorce

Protecting Your Child’s Inheritance from Divorce

January 27, 2020 by Colleen Sinclair Prosser, Estate Planning Attorney

“Protecting Your Child’s Inheritance from Divorce” by Attorney Colleen Sinclair Prosser (Audio)

Many clients worry about their son-in-law or daughter-in-law divorcing their child and walking away with a big chunk of their estate.  And why shouldn’t they worry?  With a divorce rate in America topping every other country, the chances of your kids having a long and happy marriage are not good.  The question for today is, can you do anything to protect those assets by proper estate planning?

When you give the inheritance outright to your children after you’re gone, there is nothing you can do to protect those assets or your children.  They’re fair game once control passes from the parents into the hands of your children.  Yet almost every estate plan drafted the traditional way delivers the assets straight into the hands of the children, regardless of whether the child is ready for that wealth or not.

Let me give you an example.  Susan is the daughter of Bill and Mary Jones and is married to Jason.    Bill and Mary never liked Jason, and despite the fact that they love their daughter, they felt like Jason was bad news.  Bill and Mary’s estate plan called for an equal division of the assets between their two children once Bill and Mary pass away.

After the assets were divided, each share was handed to the kids, Susan and John, in one lump sum.  Once Susan received the money from her parent’s estate, she deposited all the money she inherited in a joint account with her husband, Jason.  About a year after Bill and Mary’s death, Susan files for a divorce.  How much of Susan’s inheritance will Jason walk away with?  For those of you that guessed about half, you’re right.  So in one quick move, one half of Susan’s inheritance is gone, and into the hands of a guy Bill and Mary never liked.

How many of you know a situation like this?  Believe me, it happens all the time.  Can we keep Susan’s inheritance in the family, even in the face of a divorce?  Yes. 

Let’s look at what I call the Family Access Trust that holds Susan’s share.  Susan is named as the Trustee.  That means she has the power to manage all of her assets.  Of course, she’s also the sole beneficiary, which gives her the right to spend the money or use the assets any time she wants.  Well, you might be saying, “why keep it in Trust if she can do anything she wants with it?”

The reason is very simple.  All the assets in the Family Access Trust are clearly defined as Susan’s inheritance.  They are not commingled with any other assets belonging to Susan and her husband.  In the event of a divorce, Susan’s inheritance is not part of the marital estate that the court gets to divide.

A complete estate plan will consider not only how assets get passed to the next generation but also how to protect those assets so they remain with the people you intended to receive them.

  • Author
  • Recent Posts
Colleen Sinclair Prosser, Estate Planning Attorney
Colleen Sinclair Prosser offers years of experience in estate preservation and transfer. A strong proponent of the living trust, she also focuses on wills, powers of attorney, living wills, probate, trust administration, prenuptial agreements, nursing home planning, and special needs planning.
Latest posts by Colleen Sinclair Prosser, Estate Planning Attorney (see all)
  • 25 Years with WNAV - June 22, 2022
  • Capital Gains Taxes and Trust Assets - April 21, 2022
  • Estate Planning Mistakes - March 29, 2022

Filed Under: Divorce Protection, Estate Planning Tagged With: Family Access Trust

Other Articles You May Find Useful

Sinclair Prosser Gasior
Free Estate Planning Seminars Next Week! Register now!
Sinclair Prosser Gasior
Family Incentive Trust is Alternative to Disiheriting
Sinclair Prosser Gasior
Privacy in Estate Planning
Sinclair Prosser Gasior
Privacy in Estate Planning (Audio)
Sinclair Prosser Gasior
Divorce, Opportunists and Lawsuits: The Top 3 Risks that Cause Parents Worry
Sinclair Prosser Gasior
Divorce, Opportunists, and Lawsuits: The Top 3 Risks that Cause Parents Worry (Audio)

About Colleen Sinclair Prosser, Estate Planning Attorney

Colleen Sinclair Prosser offers years of experience in estate preservation and transfer. A strong proponent of the living trust, she also focuses on wills, powers of attorney, living wills, probate, trust administration, prenuptial agreements, nursing home planning, and special needs planning.

Primary Sidebar

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Testimonials

5 Stars
Client Review
September 3, 2020
    

We initiated estate planning following a presentation by Sinclair Prosser Attorney Jon Gasior. We were so impressed, we contracted with them to complete our estate planning. Subsequently, we assembled information on our assets and Sinclair Prosser Gasior did the rest. Correspondence was communicated to our financial institutions and the estate was established. We were very pleased with the courteous manner of the Sinclair Prosser Gasior staff. However, it was their professionalism that made us satisfied we chose this firm to handle our estate. We have nothing but praise for Sinclair Prosser Gasior .

default image
– Walter K.

Blog Subscription

Sign up for our blog to receive all of our latest estate planning news and updates!
  • This field is for validation purposes and should be left unchanged.

ANNAPOLIS

900 Bestgate Road
Suite 103, Annapolis, Maryland 21401
Phone: (410) 573-4818
Fax: (410) 573-2802

BOWIE

4201 Mitchellville Road
Suite 403, Bowie, MD 20716
Phone: (301) 970-8080
Fax: (410) 573-2802

MILLERSVILLE

1520 Jabez Run Rd
Suite 300, Millersville, Maryland 21108
Phone: (410) 573-4818
Fax: (410) 573-2802

WALDORF

Hamilton Centre II
3261 Old Washington Road, Suite 2020 Waldorf, MD 20602
Phone: 800-366-4615

Map

map for office

Footer

footer logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Maryland Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

© 2023 American Academy of Estate Planning Attorneys| Privacy Policy | Contact Us | Disclaimer | Site Map