How to Safeguard Your Inheritance

The generation who are now approaching retirement age will have accrued more wealth than any generation before them. The majority of their working lives will have been during years of financial boom. As a result, their children will stand to inherit more than ever.

Though this means that younger generations should generally be better off in the future, it comes at a time when divorce rates are also higher than ever before.

The Financial Implications of Marriage

With some partners standing to inherit a lot of money when their parents die, what happens to this money if a marriage should end is something many couples are now having to think about.

Though the law does sometimes recognise the personal nature of inheritance in cases of divorce, with the law as it is, when couples choose to divorce their financial assets are generally divided at the discretion of the courts. When this happens, how their shared assets are divided will depend on many different factors (their input, length of marriage, employment situation and, most importantly, children).
For partners who inherit a large amount of money from their parents, this can be a worrying time.

How Can You Protect Your Family Inheritance

Though for some people it goes against the basic principles of marriage, some see financial protection as the most sensible option for couples entering into marriage.

One of the most reliable ways for you to protect any money you stand to inherit from your parents is to draw out a prenuptial agreement with a prenuptial agreement solicitor. Though these agreements aren’t yet a binding legal document in the UK, they do carry an increasing amount of weight in the courts. If a prenuptial agreement stipulates what is to happen to any future inheritance, it is very likely that the courts will recognise this.

Another way to make sure your inheritance stays in your family in the event of a divorce is to put the money in trust for your children. This way the money can only be accessed by your own children when they reach a certain age.

If you are worried about what will happen to the money left to you by your family in the event of a divorce, it may be worth you speaking to a specialist. There are many different options. By speaking to specialist divorce solicitors and solicitors who deal with tax and trusts you will be in a much better position to choose the option that’s best for you.
 

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