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:

 

Lucky break: Seventh Circuit judges hearing gay marriage appeals lean left - San Diego Gay & Lesbian News

Lucky break: Seventh Circuit judges hearing gay marriage appeals lean left
San Diego Gay & Lesbian News
Since the Supreme Court struck down the core of the so-called Defense of Marriage Act in June 2013, 38 state and federal courts have upheld the freedom to marry, with only 1 state judge in Tennessee ruling the other way in a private action for divorce .

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Inherit? Invest - MiamiHerald.com

MiamiHerald.com

Inherit? Invest
MiamiHerald.com
If you take an inheritance and put it into a joint account, you have just given your spouse 50 percent of the money, Green said. Because of the high rate of divorce, Wright said they advise clients to keep inheritance money in their name, rather than .

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Savers could pay death tax while they are still living
Government wants to stop wealthy people benefiting from complicated schemes that allow them to dramatically reduce the amount they will owe after their death...


How to slice up an inheritance and keep tax low
For one writer there is some good news, there is no inheritance duty or gift duty in Australia...


I Inherited $20K. Do I Have to Pay Taxes?
Inheritance taxes don't apply. However, IRA distributions must be taxed eventually...


The Voice of British Farming
Your basket is currently empty! The tax helpline gives confidential advice on all tax and accounting matters. It is staffed by experienced accountants with specialised knowledge of tax and accounting issues surrounding the farm business...


Divorcing Women: Here's How to Protect Your Inheritances And Gifts - Forbes

Divorcing Women: Here's How to Protect Your Inheritances And Gifts
Forbes
Karen and her grandfather were always close. When he passed away two years ago, Karen inherited a significant amount of money. She and her husband Gary are now divorcing, and the process is getting ugly. To her surprise, Gary is now threatening to .

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Liza Horvath, Senior Advocate: Avoiding inheritance shock and awe
As Stacey and Doug flew to California to attend the funeral of Stacey's mother, they discussed the "reading of the will" and what it might reveal about a possible inheritance...


6 signs of bad financial advice
While good sound nuggets of money advice can help you keep money in your pocket, bad advice can leave you digging out of financial hole..


 

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