How can I protect my children’s inheritances from their future ex-spouses?


Rather than make bequests to children outright, distributions can and should be made in trust to your beneficiaries in order to provide protection from divorce, creditors, and other special circumstances. If distributions are made outright, the money belongs directly to the beneficiary who receives it and is subject to his/her existing and future creditors. A distribution in trust can be designed with certain clauses and distribution requirements, so an intended beneficiary is the only one who benefits from the inheritance.