Falk, Cornell & Associates, LLP

An Estate Planning Law Firm

Call Us Today (650) 463-1550
  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • Services
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Business
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Senior Resource Guide
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Seminars
  • Resources
    • Client Resources
    • Consumer Resources
    • ELDER LAW REPORTS
    • Estate Planning & Related Forms
    • Newsletters
    • Professional Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG

Make Sure Your Dreams Don’t Turn Into Nightmares

July 31, 2011 by Mary S. Falk, Estate Planning Attorney

Compliments of Our Law Firm,
By: The American Academy of Estate Planning Attorneys

Parents dream many dreams for their children.  These dreams often incorporate hopes that their kids will get a good education, embrace fulfilling careers, keep their good health, and find happy, stable marriages. Sometimes reality can play out more like a nightmare in this last instance, however, as more and more marriages end in divorce.

Even when our children have grown into the independent adults we have encouraged them to be, we still want to shield them from the worst nightmares of real life. The loss of family wealth through a divorce settlement is a trauma that can be mitigated, or avoided altogether, through the use of a Divorce Protection Trust.  When you leave your assets to your heirs using this type of Trust, that inheritance is not distributed outright, but the funds can still be used at your heirs’ own discretion. Since it is held in trust, the inheritance does not become marital or community property; therefore, in most states, no part of the inheritance is lost in a divorce.

You can also protect your children from the financial consequences of your spouse remarrying after your death. By sheltering the maximum amount that may be left free of estate tax for the benefit of your spouse and/or children in a Family Trust, rather than distributing assets outright, you can provide access to both principal and income for their needs. The assets in the Family Trust will be free of estate tax at your spouse’s death. A Marital Trust can also be set up to receive assets in excess of the maximum allowable funding of the Family Trust. You decide if your spouse can access the principal of the Marital Trust for specific purposes, or if they are entitled to income only.  In either case, the remainder of the Marital Trust will ultimately reach your own children and will not be available to the new partner of your surviving spouse or that partner’s family.

While you can’t ensure that your children’s lives are nightmare-free, through thoughtful estate planning, you can ensure that your heirs have the comfort of the inheritance you intend for them. An experienced estate planning attorney can help protect your kids from the financial consequences of divorce and remarriage.

Is Your Plan Outdated?

Change is inevitable! See if your plan is outdated and if you need to take action to protect your loved ones.

Office Address

865 Laurel Street, Suite 4
San Carlos, CA 94070
United States (US)
Phone: (650) 463-1550
Fax: (650) 463-1560

Opening hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM

Map

fc_sidbr_map
x

YES! I would like access to over 40 Worksheets and Checklists discussed in The Ultimate Caregiver Guide!

© 2021 American Academy of Estate Planning Attorneys, Inc.