It's been a long time since I've blawged, but yes ladies and gentlemen, Daneshvar Law is back. With that, let's talk about one of my favorite topics... ESTATE PLANNING.
By leaving assets for your children in a trust, you are able to insulate assets from creditor claims and divorce proceedings. The money held in trusts is off-limits to the beneficiary’s creditors and from a divorcing spouse during divorce proceedings. For example, if your child opens up a credit card or takes out a loan, the bank will not be able to attach the assets in his or her trust.
Also, if your child gets divorced, his or her spouse cannot touch the trust property. If a child received all trust assets on reaching a specified age and kept the assets solely in his or her name, almost all states would not consider this property marital property. Thus, the spouse would not be entitled to any of the trust assets. However, if your child puts the money in joint tenancy with his or her spouse, the assets would be considered marital property in most states, and the divorce court could give the spouse a percentage of the assets.