Divorce & Protection Planning
Protecting an inheritance from being lost in a divorce or to a beneficiary’s creditors is a serious concern of many individuals. Many from the older generation fear that their children and grandchildren lack strong financial decision-making skills – and the potential for creditor attack or for beneficiary dissipation of an inheritance is greater during difficult economic times.
Also, divorce rates exceed 50% nationally. Many individuals express concern over their children and grandchildren divorcing – they don’t want the assets they worked so hard to accumulate winding up in the hands of a former daughter-in-law or son-in law, etc.
Blended Family Planning
A higher divorce rate also leads to more second and subsequent marriages – each with a higher statistical probability of ending in another divorce. With blended families (in other words with potentially his, her, and their kids), it is critical that each parent’s planning protect his or her children in the event that parent predeceases the subsequent spouse. Failure of blended-family parents to do this type of planning practically guarantees that somebody’s kids will be disinherited or that a messy probate will result.