Protect Your Child’s Inheritance From Their Spouse
Planning early can help keep hard-earned assets, family heirlooms, and closely held businesses within the family for generations.
Keeping an Inheritance in the Family
Parents who build an estate plan often want assurance that what they leave behind stays with their own children and grandchildren rather than becoming entangled with a child’s spouse. A trust involves three roles: the person creating it (the settlor or grantor), the person or entity managing the property (the trustee), and the people who benefit from it (the beneficiaries). How you structure these roles determines how much protection the inheritance actually has.
Ways to Structure an Inheritance
Trust-based planning
- Assets can be held for a child’s benefit rather than given outright
- Trustee (often a professional or trusted family member) manages distributions
- Can include terms that protect assets in a divorce
Other considerations
- Prenuptial or postnuptial agreements for the child’s own marriage
- Keeping inherited assets titled separately, not commingled
- Reviewing the plan periodically as family circumstances change
Protecting an Inheritance FAQs
Does leaving assets in a trust guarantee they stay in the family?
It significantly improves the odds when the trust is properly structured, though no planning tool can guarantee every outcome. The specific terms matter a great deal.
What if my child is already married?
It’s still worth planning. A trust can be created and funded at any time, and it’s often easier to discuss proactively than after a problem arises.
Is a trust the only option?
No. Depending on your goals, other tools like beneficiary designations or agreements between your child and their spouse may also play a role.
Related Reading
Want to Protect What You Leave Behind?
Let’s talk through the options for structuring your child’s inheritance.
