The joys of a wedding shouldn’t suggest that planning for a divorce is counter-intuitive. No one wants to see spouses in love separate, but you have to remain aware by at least realizing this potential. During a divorce, the inheritances, pensions and incomes of spouses are all at risk. Due to this risk, estate planning in Texas should include a trust that protects against divorce.
What is a trust and how does it work?
A trust is a living or testamentary contract where assets are arranged for a beneficiary. When assets are set aside for a future transfer date, those assets get sheltered from liability. In the case of a trust, the assets have no human liability because those assets belong to the trust. Without this clause, inheritances can be pursued by any person or entity in the public. Trusts, instead, have:
- Trustees who grant or deny withdrawals
- Numerous variations that either help disabilities, retirement funds or businesses
- A lifespan of up to 20 years after someone dies
- The option of being revocable or irrevocable until its expiration
Protection against divorce
Divorces expose the assets that each spouse involved has, such as inheritances. A trust, depending on its type, won’t get split up in a divorce. In estate planning, its protection is best when the trust is started prior to its creator or beneficiary marrying. With the right steps, a spouse won’t unfairly gain someone else’s inheritance.
Estate planning in Texas
If you’re writing up a plan to protect the inheritances of your beneficiaries, then you must consider if or when they’ll marry. Marriage creates what’s called community property, and this can lead to an inequitable gain of someone’s inheritance if there are no protections in place.