Protecting Inheritance Funds When Ending a Marriage
When children are involved, the stakes of a challenging and emotionally charged divorce are often elevated. For instance, a specific aspect that can lead to disputes is protecting funds designated for a child’s inheritance, but there are ways to safeguard inheritances for the next generation when ending a marriage.
To have your unique concerns addressed, delve into strategies and legal considerations when it comes to shielding a child’s inheritance with a Bucks County family attorney.
Marital Property Laws and Keeping Inheritance Funds Separate
In Pennsylvania, marital property is subject to equitable distribution when a union ends. This means that assets that have been acquired during the course of a marriage are divided fairly, and it’s important to recognize that fairness does not necessarily mean an equal division. Because inheritances are generally considered separate property, they are not automatically subject to division but there are steps that can ensure protections are in place.
For instance, one effective strategy for protecting a child’s inheritance is to establish a trust. When you create a trust, you will be designating inheritance funds specifically for a child or outlining the distribution for multiple kids. This legal structure ensures that the funds are used for the child’s benefit and are not subject to division as part of the marital estate.
And whether you opt to set up a trust or not, you need to keep inheritance funds in a separate account, distinct from joint accounts or marital assets. Commingling inheritance funds with joint finances complicates matters during divorce proceedings. A clear paper trail, achieved through bank statements and other financial records, establishes that the funds are intended for the next generation.
Seeking Legal Guidance Early On
Talking to an attorney early on in the Bucks County divorce process is a way to be fully informed. Even if you have yet to separate, are currently living in a residence other than your spouse, or have already begun to divorce, a knowledgeable attorney can provide guidance on the best strategies for protecting a child’s inheritance. They can also assist in negotiating fair and amicable terms with your spouse.
When it comes to protecting inheritance funds, understanding state laws is essential. To discuss protections under New Jersey and Pennsylvania law, connect with a Bucks County family attorney. Seasoned lawyers know how to establish trusts, can advise you on how to keep funds separate, and talk you through possible legal agreements.
Being overwhelmed when moving through the process of ending a marriage is normal, but there are ways to achieve your desired outcome, including thinking of your child’s financial future. An informed approach to how you will afford your post-divorce life and what funds you want set aside for your children can make a significant difference in securing the best outcome for your family during this challenging time.
Is it time for you to protect your child’s inheritance? Bring your concerns to the attention of the legal team at Kardos, Rickles & Hand. Call 215-968-6602 to schedule your consultation.