| Divorce of a trustee…read on:
CLIENT QUESTION:
Our daughter is the trustee of our 9-year-old irrevocable Medicaid trust which includes two homes, and a bank account. She is also the executor of our will and beneficiary of all other assets that she will share with our son. Our question is, if she divorces her husband will he be entitled to claim any part of her inheritance if something happens to us?
Thanks for your help.
MY RESPONSE:
The son-in-law gets nothing unless your daughter is a complete idiot. In New York (I am assuming she is a New Yorker), assets received as an inheritance are not split in a divorce. They are considered separate property. If she puts his name on the account then this may turn the asset into marital property that potentially could be split…and in that case, your daughter gets what she deserves. Often, our clients leave assets in trust for their potentially divorcing children to make it impossible for the soon-to-be ex to have any claim, even if your children make mistakes. |
