Ask Terry Questions Inheritance — keeping it separate

Inheritance — keeping it separate

By Terry Savage on September 09, 2018 | Financial Planning / Retirement

I’m a widow with one married child (45 yr old)
Is there a way I can leave money stocks house etc to my daughter and keep her husband from any claim on it especially should they get divorced?

Terry Says

First, you should create a Revocable Living Trust. YOu’ll need an estate planning attorney to do this. It should cost about $1500, depending on where you live. Next, you need to have the attorney change the title of the house to your Revocable Living Trust. You will name your daughter as SUCCESSOR TRUSTEE if you cannot act, or she could be your co-trustee.
Also re-name your brokerage account in the name of the trust.

Then if you die, tell her she must keep any inherited assets totally separate from her marital assets! Separate accounts, especially for the proceeds of the house if she sells it. Under the law, inheritances are not considered marital property in a divorce. (Under some circumstances, the income she derives from those assets might be considered if he seeks spousal support, but that is unlikely in most cases.

Take these steps right away. And be sure to include your daughter in the process, stressing the importance of keeping the assets separate, and not using them to pay marital bills!

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