Your Legal Corner: Trusts and divorce

Today Your Legal Corner will address Trusts and Divorce.

When planning an estate, one should consider the possibility their children may someday get divorced, and if a divorce would substantially change your overall estate plan.

Having assets pass into a Testamentary Trust will increase the likelihood your assets will be used to “benefit” your intended beneficiaries. As you may know, a Trust may be able to preserve premarital assets, as well as to ensure alimony or child support payments are made.

However, what you may not be aware of is creating a Trust may safeguard an inheritance so it is not required to be used to support or replace an alimony award where without an inheritance it would be an ex-spouse’s responsibility.

Estate Planning

Generally, any property acquired during the marriage by either party by way of gift, devise or intestate succession shall not be considered when distributing marital assets in a divorce. (N.J. Stat. Ann. 2A:4-23A) Still, in some cases, receiving a gift, devise or bequest can result in a change of circumstances justifying a reduction of alimony payable by the non-inheriting spouse, or have the opposite effect of increasing alimony paid by an inheriting spouse.

Read More: NJ.com