If you have children from your first marriage and you are open to or actively planning to remarry, it’s important to know how to protect your children’s inheritance in the event of your death. Failing to take proper steps to protect their inheritance can prevent those assets from being diverted from your children to your spouse.
In the state of Illinois, there are several estate planning tools and processes that are available to help protect the assets you plan to leave to your children. In this blog, our team of McHenry estate planning lawyers at Diamond Estate Planning Law digs into those tools and processes here and how they can be leveraged to protect your children’s inheritance.
Five Ways To Protect Your Children’s Inheritance If You Remarry
While there are many strategies to protect your children’s inheritance, we’re going to look at some of the most common benefits or significant advantages here.
- Prenuptial Agreement: One of the most effective methods to protect your children’s inheritance during subsequent marriages is by ensuring there is a prenuptial agreement in place with your new spouse. This agreement is a formal legal document that acts as a contract between the two parties and outlines the distribution of assets following divorce or death. A prenuptial agreement will commonly include components or provisions for the children’s inheritance so that those assets can be kept separate from the others during potential divorce proceedings.
- Trust: Trusts are another incredibly effective way to protect assets that are meant to be distributed to your children upon your death. There are multiple types of trusts available in Illinois, including revocable and irrevocable trusts. A revocable trust is also known as a living trust, and it allows the grantor to retain a level of control over the assets during their life. An irrevocable trust transfers ownership of the designated assets to the trust itself, then to the beneficiary. (It’s important to note that if you remarry, there may be potential for impact is on the distribution of your assets.)
- Will: By working with a leading Illinois estate planning attorney to create a will, you can ensure legal powers are enforcing the distribution of your assets following your death. Your will can also include provisions covering your children’s inheritance, further safeguarding their welfare following your passing.
- Life Insurance: A common way to leave an inheritance for your children is to name them as beneficiaries on your life insurance policy. Doing this can ensure that in the event of your death, proceeds from your life insurance policy are split according to your wishes on file with the insurer.
- Power Of Attorney: Granting power of attorney to someone you trust can legally empower them to make decisions on your behalf. This means that even if you become incapacitated due to injury or illness, someone will still be able to make decisions on your behalf for your children and their care.
Let Diamond Estate Planning Law Help You Protect Your Children’s Inheritance In Illinois
Don’t let the joy and excitement of getting remarried distract you from the prudent financial business. By taking the necessary estate planning steps you can ensure that your assets are distributed according to your exact wishes, making sure your children are provided for and protected if you pass away.
No matter what types of legal action you would like to take, Diamond Estate Planning Law can help you reach those goals. Reach out today to discuss your needs in a free consultation with a member of our trusted local team, and begin protecting your children’s inheritance today.
DISCLAIMER: Any information contained herein is solely for informational purposes and is only applicable in the state of Illinois. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, we urge you to contact a local attorney for advice pertaining to your specific legal needs.