Strategies to Protect Your Family’s Assets
You may want the property to remain in the family for many generations when you leave assets to your kids. The assets could end up in the possession of strangers due to a variety of circumstances beyond your control.
For family asset services, you can also check out family officers and leading institutional investors.
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some ways that part of your assets might end up going to the family.
- Divorce of your heir
- Process your spouse's heir
- The creditors of your heirs collect their assets
- How assets travel after you're gone
Imagine that you leave a small fortune to John, your only son and married to Sally. You would prefer that your assets be transferred to Billy, the only child they have if John dies.
What happens if John and Sally get divorced? Although inheritances should be considered separate property and not subject to division in divorce proceedings, it is possible for assets to become mixed up, making it difficult to determine if they are part of the marital estate.
John's inheritance could be used to decide if he should pay large alimony payments. John's inheritance may end up in the hands of Sally and her family.
Similar situations can happen if John dies shortly after you do. However, Sally would still be entitled to all the inheritance John received. She could also leave her assets to her children from her second marriage if she marries again and has more kids. This would leave Billy with only a fraction of the property he wanted.
Sally may have died before John and Billy might have received John’s entire estate as an inheritance. This is why the timing of the death of your heir could have a huge impact on the disposition of the property you leave.