A Prenuptial Agreement Can Protect Your Children’s Inheritance Rights

 Posted on September 10, 2015 in Prenuptial Agreement

While many may view prenuptial agreements as necessary only for the rich and famous who stand to lose millions in divorce, the reality is much different. In fact, many marriage and financial experts recommend such agreements for all couples, especially those entering a second or subsequent marriage. In addition to outlining what is to happen with marital property in the event of death or divorce, can also be used to identify your own personal assets prior to marriage and establish a plan for their disposition as well.

Heirlooms and Inheritances

Consider a fairly specific, but not terribly uncommon scenario: For several generations, your family has passed down an item of both physical and sentimental value to the oldest child. This item previously belonged to your father, to his mother before him, and to her father before her. You inherited the asset prior to your marriage and long before you ever had children. Since the heirloom is an inheritance, and since it was acquired before marriage, it is not considered marital property by law. However, a prenuptial agreement can help you solidify the item’s status as personal property, retaining your ability to pass it down to your oldest child regardless of the state of your marriage.

A prenuptial agreement can also allow you to provide specifically for children from a previous relationship. If you already have children, you may wish to set aside a portion of your personal property for their benefit before you enter a new marriage. You can use a prenuptial agreement to prevent your own assets from becoming part of the marital estate; instead they can be designated for the care of or a future inheritance to your children unrelated to the current marriage. Doing so in advance can reduce confusion, stress, and contentiousness over your wishes, and can provide clarity for both you and your soon-to-be spouse.

Full-Service Planning for Future

In some respects, a prenuptial agreement can serve a similar purpose to a will. A prenuptial agreement, however, also offers protection in the event of divorce. Therefore, your assets named in the agreement will be unaffected by the division of property process, allowing your children to benefit amidst the complexities of your current situation. You may wish, though, to draft a prenuptial agreement and a will that complement one another, providing multiple levels of security for your personal assets.

For more information on drafting a prenuptial agreement with regard to heirlooms and inheritances, contact an experienced Lombard family law attorney at A. Traub & Associates. We will meet with you to discuss your situation and future plans, then help you develop an agreement that best suits your needs.

Sources:

http://www.cnbc.com/2015/02/12/remarrying-protect-your-kids-assets-with-an-airtight-prenup.html

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2087&ChapterID=59