3 ways a trust could protect your adult child’s inheritance

When you create your estate plan, you want to provide for your family no matter what occurs in the future. For some people, the best way to protect the inheritance of their adult children is a trust. How could a trust protect your child’s inheritance from future challenges?

A trust could protect your child’s inheritance if you remarry.

Around one in five people will remarry later in life. However, as CNBC notes, you may unintentionally disinherit your children from a previous relationship if your spouse inherits your wealth directly. A trust allows your spouse to benefit from your wealth during their lifetime while ensuring that your children will benefit from those funds after your spouse passes away.

Placing funds in trust can protect them from creditors.

If your child faces challenges in the future—whether they struggle with money management or face unexpected costs due to medical needs—it may have a significant impact on their finances. A well-crafted trust could help protect their inheritance from creditors and ensure that their inheritance offers support and security even if they face financial challenges.

A trust can protect your child’s inheritance from their spouse.

When your child marries, they may want to use their savings to build a comfortable life with their spouse. However, if your child inherits money directly and it becomes commingled with their marital funds, then that inheritance could be in jeopardy in a divorce. Placing funds in trust with your child as the beneficiary allows them to build a comfortable life for their family while protecting your child’s financial health from potential marital strife.

If you wonder whether a trust is the right choice for your estate plan, consider discussing your needs with an experienced estate planning attorney.

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Kevin Tharpe

With 25 years of experience, Kevin understands how estate planning, special needs planning, and government benefits programs work together. This is a crucial element of a thorough plan. He explains your eligibility for benefits programs and ensures that you do not make costly mistakes that may disqualify you or deplete your assets.

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