inheritance
I will be inheriting a 1/3 of my father’s estate once his house sells in the beginning of 2023. I am married but would like to put my inheritance in a separate account from my husband once the estate is closed so I can do what I please with the money since it’s mine. Can I legally do this if I separate from my husband in the future? I’m just trying to protect my own money. I would like to give my kids a portion for their college/future. I just need some guidance. Thank you
Terry Says
Yes, you can legally keep your inheritance separate — and you should!
Simply open a new account (at another bank) and set up a money market account. Deposit the inheritance. It won’t pay much interest, but it will legally keep the money out of your marital estate. Keep good records. And don’t pay for anything “joint” out of this account — such as a bathroom or kitchen remodel on a home you own jointly. Once you do that, the money will be part of your “marital estate.”
You and your husband should set up 529 Savings Plans for your kids. Go to www.SavingforCollege.com to investigate your state’s plans, and see whether you get a tax deduction for contributions. If you live in Illinois, just go directly to www.BrightStart.com. Make regular contributions to the plan out of your JOINT funds, as college will likely be a joint obligation in divorce. This has absolutely nothing to do with your inheritance!
