How to protect an inheritance from a spouse

On Behalf of | Oct 2, 2019 | Trusts

Nevada residents who are expecting to receive an inheritance after getting married have ways to protect that money. One option could be to put the cash into a trust. The language of the document could stipulate that the money is to be for the benefit of a child or grandchild. Another option could be to create a prenuptial or post-nuptial agreement with a spouse that allows the inheritance to remain separate property.

It is important to note that such an agreement could be waived or terminated at any time. Therefore, it could still be possible for a spouse to receive a portion of that inheritance. It is also important to ensure that money from an inheritance is not commingled. If it is, the asset could be considered to be marital property that may be divided in the event of a divorce.

The use of a trust could be helpful for those who are trying to protect assets from creditors or from being divided in a divorce. Generally speaking, cash or other property that is held in a trust is held separately from a person’s estate. Those who want maximum asset protection may want to consider creating an irrevocable trust. This is because an individual doesn’t have any control over property inside of it.

An attorney may be able to help a person create a trust or other estate planning documents. If a person already has an estate plan, an attorney may be able to review it to ensure that it still meets his or her needs. In the event that changes need to be made, counsel may be able to make them in a manner that minimizes the odds of a legal challenge.