Trust planning can be complex, which is why it should always be handled by an experienced estate lawyer. Depending on the type of trust you choose, there are many benefits you can reap from choosing this kind of tool. More and more, however, individuals are considering putting verbiage inside their trusts to have a spouse removed in the event of a divorce. Like most aspects of putting together such critical documents, there are pros and cons to this approach.
While safeguarding a trust by including such a provision might work out in the long run, not every divorce tears the couple apart entirely. Sometimes the couples part ways but are able to remain close for the purposes of raising children or even managing a family business. Some partners are divorced and then decide to remarry after a period of time.
While the basic concept of planning ahead to protect assets is a good one in general, it’s hard to predict the future in the event that you do get divorced. There’s no telling what kind of emotions might be on the table at that time. In some cases, leaving the trust assets up for negotiation at the time of divorce can allow the parties to make better decisions for certain assets, like business interests.
There are three ways that you can plan ahead without restricting yourself too much in terms of a trust:
- Aim for flexibility alongside precision to ensure that both parties have options in a divorce
- Language that protects what the majority of divorce settlors would hope for
- Seek an attorney who understands that he or she may have duties to both spouses at the trust drafting stage
To learn more about setting up a trust for success, contact us today at (601) 925-9797.