The main duty of a parent is to ensure the future of their children. This includes protecting children’s inheritance in second marriage.
Whether as workers or business owners, rearing the growth of one’s children, guiding them through their life journey, and providing for their future are among the top of parents’ priority list.
For those with plans of remarriage, how can we protect our children’s future?
Good news! We don’t need to seclude ourselves in a life of solitude. After all, the heart wants what it wants right…Right?
So, what do we need? Estate planning and preservation.
For the most part, your property is under your control and your control only. Protect your property now instead of passing on the responsibility to your children. More often than not, it will be a very difficult uphill battle for them especially when their inheritance is challenged by other persons.
But that is not all. Through estate planning, you can also implement legal methods of transferring your properties to your children in order to effectively reduce estate taxes, if not, avoid them altogether.
Establish a Trust
For protecting children’s inheritance in second marriage, it is recommended to establish a Trust for your children. More details on Trusts can be found here but for a general overview, establishing a Trust creates a legal entity with the purpose of securing your properties for your beneficiaries.
When done correctly, a Trust entity can be separated from your person allowing you to avail of debts or any other financial instruments worry-free. Properties placed under a legally separate Trust are protected from your personal or commercial financial obligations.
Wills are Not Ideal
Wills are not recommended to protect children’s inheritance in second marriage.
Due to the legal requirements in the execution of a trust, the assistance of a trusted attorney is recommended. In this manner, you will be free to concentrate on how to best divide your own properties for your children without the burden of having to study and learn about the various legal requirements to execute a valid trust. In addition, a detailed trust specifically tailored to your intentions and specifications will always be better than any other template format. Lack of material details could cause more harm leading to confusion and feud in the family.
Do note that if your trust is declared invalid for failure to comply with any one of the legal requirements, all your efforts could go to waste.
Trusts are helpful vehicles to help protect your property and protect your children’s inheritance in second marriage, and secure your children’s future. As part of Estate Planning, you will be determining the extent of your assets and deciding how to distribute these properties among your children.
Through the assistance of your trusted attorney, you can develop legal methods to set aside your assets earmarked for your children and continue on your career or business worry-free. With the right legal advisor, you can legally reduce or avoid taxes to keep your properties intended for your children intact.