Does marriage override a trust?
Does marriage override a trust?
Under California law, a marriage automatically invalidates any pre-existing will or trust as to the new spouse’s inheritance rights, unless the documents provide for a new spouse, or clearly indicate a new spouse will receive nothing.
How do I protect my inheritance from my son in law?
If you do not want your son-in-law or daughter-in-law to get any portion of your child’s inheritance, consider creating an on-going descendants trust for their benefit. This is often a sensitive subject for many families.
What happens to DSUE if you remarry?
Interestingly, remarrying has no effect on DSUE. Your clients have a right to their deceased spouse’s DSUE, even while their second spouses are still alive.
Can a spouse be the beneficiary of a trust?
Another situation to consider is if a spouse is the beneficiary of a trust. For example, a parent may set up a trust and name her child as a beneficiary. Whether the assets in that trust can be affected by the divorce depend on the type of trust and the language used in it. Spendthrift clause.
Why do married couples need an AB Trust?
Those assets can then be distributed to the named beneficiaries as well as the surviving spouse once that person dies. The main reason that married couples opt to form an AB trust is to reduce the amount of taxes that the surviving beneficiaries will have to pay on an estate.
Can a trust be used in a divorce?
Because the assets in the trust continue to be owned by the trust, they cannot be accessed in the divorce. The key to protecting marital assets in a divorce is to create an irrevocable trust.
Can a married couple set up a joint trust?
On the other hand, a married couple can also decide to form a joint trust. A joint trust is one that is managed by both spouses while they are still alive and considered to be competent (mentally able to manage it, like not suffering from something like dementia).