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Tips for Preventing Sons-In-Law and Daughters-In-Law from Inheriting Your Estate


To request a free zoom video meeting to design your estate plan, click the following link and complete the short questionnaire: -- It's common for parents to want to keep their sons-in-law and daughters-in law out of their estate, for a variety of reasons. Common reasons include the fact that the in-law spends too much money; the in-law has their own kids; the in-law will inherit from their own parents and grandparents; some parents want to keep everything in the "bloodlines" because they inherited from parents and grandparents; others just don't like their in-laws; and others fear that their children will get divorced in the future and lose their inheritance. Parents have several options when establishing an estate legal program. One option is simply leave the inheritance to the child - outright. Some parents reason that an inheritance is the separate property of the child so that should take care of it. However, inheritances that children receive are often, either intentionally or unintentionally, commingled with community property causing the inheritance to lose its separate property status. A second option parents have is to leave their child's inheritance to a trust for the benefit of the child. If the parents name the child as the trustee, the child's spouse could exert influence over the child and force the child to take excessive distributions from the trust. But some parents tell me, "Let's leave it to a trust for our child and name our child as the trustee. If our child screws it up, so be it. We did what we could do to try to protect him without taking away his access to his inheritance." A third option is to leave your child's inheritance to a trust, but name a 3rd party as the trustee of the trust - in essence restricting your child's access to his or her inheritance. By restricting your child's access to the trust, your are restricting your child's spouse from influencing your child to access the trust. You may even wish to name your child's children as the principal beneficiaries of the trust so that when your child later passes away, remaining trust assets would stay in the bloodlines benefiting your grandchildren. Your child's withdrawal or distribution rights become key components to this program. There are many factors that play into how you leave an inheritance to your children. You must factor in the community property law, the Trust Code, laws which state that fruits of separate property are community property, family law, marriage contract law, and laws allowing spouses to sign a Declaration reserving the fruits of separate property as separate property. This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship. Paul Rabalais Estate Planning Attorney www.RabalaisEstatePlanning.com Phone: (225) 329-2450...(read more)



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How To Keep Your Sons-In-Law and Daughters-In-Law Out of Your Estate Estate planning is a crucial aspect of managing your assets and ensuring they are distributed as per your wishes after your passing. It is important to strategize your estate planning to ensure that your loved ones, including your children and grandchildren, are adequately provided for. However, there might be cases where you wish to keep certain individuals, such as your sons-in-law or daughters-in-law, from accessing your inheritance. While it might seem like a sensitive issue, there are legal steps you can take to protect your estate. 1. Establish a Trust: One way to keep your sons-in-law and daughters-in-law out of your estate is by creating a trust. A trust allows you to transfer your assets to a separate legal entity that manages your assets on your behalf. By designating your children as beneficiaries of the trust, you can ensure they receive their share of the inheritance. However, you can include specific provisions that exclude your sons-in-law and daughters-in-law from any distributions made from the trust. This approach safeguards your estate from potential claims or divorces that could grant access to your assets. 2. Pre-marital and Post-marital Agreements: For individuals concerned about their children potentially sharing their inheritance with their spouses, pre-marital and post-marital agreements can be useful. These legal agreements outline how assets will be divided in the event of a divorce or separation. By having a clear agreement that states your child's inheritance is separate property, you can protect it from being subject to equitable distribution. It is essential to consult an attorney specializing in family law to draft these agreements appropriately and ensure their validity. 3. Family Limited Partnerships: Family Limited Partnerships (FLPs) can be an effective estate planning tool to separate family assets from in-laws. In an FLP, you can transfer ownership of various assets, such as real estate or investments, to the partnership while maintaining control as the general partner. By gifting limited partnership interests to your children, you effectively pass on your wealth while reserving control. In case of a divorce, the limited partnership interests are typically considered separate property, ensuring your assets remain within the family. 4. Unintended Consequences and Alternatives: While keeping your sons-in-law and daughters-in-law out of your estate might be your intention, it is essential to consider the potential unintended consequences. Excluding spouses from inheritances can strain family relationships and create bitterness. It is crucial to communicate your intentions and reasoning clearly with your children to avoid misunderstandings. Alternatively, instead of excluding your sons-in-law and daughters-in-law, you could opt for strategies that protect your estate from creditors, divorces, or other risks, while still allowing your children's spouses to benefit from the family's wealth indirectly. 5. Consult with an Estate Planning Attorney: Estate planning can be complex, and the laws governing inheritances vary by jurisdiction. To ensure your intentions are legally enforceable, seek the advice of an estate planning attorney. They can help you navigate the legal landscape, understand the available options, and tailor a plan that aligns with your wishes while being compliant with the law. In conclusion, while it is important to plan your estate to protect your assets and ensure your family's financial security, it is equally important to approach estate planning with thoughtfulness and consideration. If you wish to keep your sons-in-law and daughters-in-law out of your estate, the discussed strategies can offer potential solutions. However, always consult with legal experts to ensure your plans align with the law and fulfill your desired outcomes. https://inflationprotection.org/tips-for-preventing-sons-in-law-and-daughters-in-law-from-inheriting-your-estate/?feed_id=126799&_unique_id=64d7ff27c7655 #Inflation #Retirement #GoldIRA #Wealth #Investing #comminglingseparateandcommunityproperty #isinheritanceseparateproperty #keepinginheritanceinthebloodlines #Louisianacommunitypropertylawandinheritance #makeinheritancedivorceproof #protectchildrensinheritancefromdivorce #protectinheritancefromsoninlawanddaughterinlaw #protectinheritanceofchildren #SpousalIRA #comminglingseparateandcommunityproperty #isinheritanceseparateproperty #keepinginheritanceinthebloodlines #Louisianacommunitypropertylawandinheritance #makeinheritancedivorceproof #protectchildrensinheritancefromdivorce #protectinheritancefromsoninlawanddaughterinlaw #protectinheritanceofchildren

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