How To Cope With The Problems Of Inheritance And Divorce

Inheritance and divorce issues can be difficult to understand, especially when you consider that every state has its own laws. What is certain is that any change in your circumstances warrants another look at how your affairs are structured, ideally with professional assistance. Just overlooking one important point could mean that your assets pass to the people you would definitely not want them to pass to, instead of those you would like to benefit from your estate. Proper planning is absolutely essential, and it is equally important to amend those plans when necessary.

Marriage and divorce create two totally separate problems when it comes to inheritance. Firstly, there is the problem of a potential divorce for the person making a will. This will have an effect on the level of their assets, and may even invalidate part of the will if certain conditions can no longer be met. Secondly, there is the potential problem of someone inheriting money while they are in a marriage which is about to end. The two cases are obviously completely different, and need handling in different ways.

It is often difficult to assess the potential financial damage of a divorce in advance, but it is safe to say that your asset levels will be diminished. It is certain that any will you had drawn up before the divorce will need to be amended. If money was to be left to your marital partner, you will want to change your will even before the divorce takes place, in case you should die suddenly in the meantime. Once your revised income and assets are known, you can always make further revisions to the will.

Dealing with money that you are going to receive as a beneficiary is more difficult, as it depends entirely on the laws of the individual state in which you live. In most states, there will not be a problem as the inherited money will be classed as separate property. In this case, the money will remain yous after any divorce has taken place. In some other states where this law does not apply, you will have greater problems. If you know that you are due to be a beneficiary of a will, you should discuss the situation with the other party to find the right solution.

The higher your asset level, the greater the potential problems with any divorce inheritance. Once you reach the level where inheritance tax would have come into play anyway, you will need to have your estate structured by a professional. This is where you can get the advice you need considering divorce at the same time. There is never any substitute for taking advice from a professional who is licensed to practice in your state, as they will know exactly how to handle inheritance and divorce.





 

Inheritance Advice News:

 

National Estate Planning Awareness week - Lexology (registration)

National Estate Planning Awareness week
Lexology (registration)
. you should consider an update: (1) marriage, divorce or remarriage (you don't want an ex-spouse to unintentionally end up with a share of your inheritance), (2) birth or adoption of a child or grandchild (be sure you have named guardians for your .

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Experts Give Advice for Those Who Inherit Large Sums of Cash
For anyone not used to having large sums of cash, receiving an inheritance or life insurance payment could be overwhelming...


Experts offer advice for same sex-couples in wake of marriage legalization - Duke Chronicle

Experts offer advice for same sex-couples in wake of marriage legalization
Duke Chronicle
Baker gave financial advice, specifically regarding social security benefits, asset sharing and inheritance. She reminded attendants that jointly sharing assets and inheritance can lead to ramifications if a marriage does not work out, especially. What .

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What's happening at the Ames Free Library - Wicked Local Easton

What's happening at the Ames Free Library
Wicked Local Easton
We will discuss how to avoid costly mistakes that families make in estate plans, how Probate works and the hidden costs, nursing home costs, how to protect a child's inheritance from divorce and creditor claims, and much more. Free and open to all .

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Theater Listings for Oct. 17-23 - New York Times

New York Times

Theater Listings for Oct. 17-23
New York Times
Hari Dhillon, who starred in the drama's London run last year, plays Amir, a Pakistani-American lawyer who denies his cultural and religious inheritance, with terrible consequences. Gretchen Mol, Karen Pittman and Josh Radnor co-star. ... The play .

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American politics - The Economist

The Economist

American politics
The Economist
It was certainly a life on a scale to match a stupendous inheritance. Glad-handing Rocky . In his private life, Rockefeller endured public distaste at his divorce, his remarriage and the custody arrangements of his new wife's children. He lost his .

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