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:

 

Sudden Wealth - Glenwood Springs Post Independent

Sudden Wealth
Glenwood Springs Post Independent
Whether in the form of an inheritance, insurance settlement, business sale, divorce, or lottery, there are determining factors in whether you blossom and build on this windfall or end up worse off than before. First and foremost, we need to manage the .

..


8 Things You May Not Know About Augustus - History

8 Things You May Not Know About Augustus
History
On August 19, A.D. 14, after ruling Rome for more than four decades, Augustus died at a villa near Mount Vesuvius. His body was then cremated and placed in a colossal family tomb, with his self-proclaimed accomplishments engraved on bronze pillars at .

and more »
..


Family BS links to help later life planning
The Family Building Society has linked up with four partner firms to offer advice to members on Later Life Planning...


Advising women through transitions - InvestmentNews

Advising women through transitions
InvestmentNews
Ms. Franklin: What do financial advisers need to know in these circumstances EUR” death, divorce or even an inheritance? Ms. Bradley: One thing is communication. How do people prefer to see information, to make decisions? Women are looking for real .

..


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...


 

Many, if not all of the links on this website are affiliate links which means that we will be compensated if you choose to buy at some point in the near future. Please accept our sincere thanks for your support.


Technorati Tags: , ,