When a divorce is launched, a loss of trust is commonly experienced by the separating parties.
Both sides may fear an asset grab. Trusts are often believed to be invulnerable during a divorce, and in many cases, they are. Despite what some people think, there is no standard form for trusts and the varieties are myriad.
A spiteful devil may be nesting among the details and some trusts may be there for the snatching. When was the trust created? Is it irrevocable, or not? In the linked video, specialist Martin Shenkman provides insights and advice for anyone seeking to protect trust assets during a divorce.
Mr. Shenkman emphasizes that any trust connected to you, whether you created it yourself or it was established for you, should be an object of concern. He cautions that consultation with a divorce attorney is essential. You may need to talk to a second lawyer if the trust is established in a state other than where you reside. Finally, talk with an estate planning attorney before making any changes to a trust.
Timing is key. Once a divorce is underway, it may be legally imprudent to make any changes to a trust’s conditions. If trouble is brewing, act promptly. This advice may sound cold, but it is soundly prudent.
If a person has any kind of authority over a trust – he uses the example of power of appointment – it is essential to understand the implications of that role in a divorce settlement. For example, if a court somehow ruled that your divorced spouse is in effect a creditor, you could be forced to pay that party from the trust in line with your designated responsibilities.
For more information, please read:
Trust Planning for Divorce | Wealth Management