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In cases where a surviving spouse is planning to remarry, it is crucial to establish a separate trust for the benefit of their adult children, and to incorporate the trust into a prenuptial agreement.
Here’s why this strategy is vital:
Protecting Children’s Inheritance:
A prenuptial agreement can specify that certain assets will be held in a separate trust for the benefit of the adult children, protecting their inheritance from potential claims by the new spouse in the event of divorce or death.
I had a client who, when we discussed disinheritance of step-children following remarriage after a spouse dies, said, “oh yeah, that’s what happened to Cinderella.” That is exactly right. If Cinderella’s father would have had a Separate Trust for Cinderella’s benefit, then Cinderella would not have been abused by her step-mother and step-sisters.
Here’s how a Separate Property Trust for Cinderella, with a bank as the successor trustee, would have significantly changed the Cinderella story:
1. Cinderella’s financial security
Financial Independence:
Cinderella would have access to funds for her living expenses, education, and other needs, regardless of her stepmother’s ill will. This would free her from being economically dependent on the stepmother.
Estate Assets Preservation:
The trust would protect her inheritance from being depleted by the stepmother or stepsisters, ensuring it remains intact until she is ready to receive it.
2. Preventing the stepmother’s control
Limited Stepmother’s Power:
The stepmother would not have control over Cinderella’s separate property or any portion designated for her in the trust. This would prevent her from forcing Cinderella into servitude or denying her basic needs.
Neutral Oversight:
A bank as a successor trustee would act impartially, following the terms of the trust agreement and ensuring Cinderella’s financial well-being, rather than succumbing to the stepmother’s influence.
3. Impact on Cinderella’s daily life
Freedom and Dignity:
Cinderella would retain her freedom to pursue education, skills, and personal growth, rather than being confined to a life of chores and hardship.
Protection from Abuse:
The trust, combined with a responsible trustee, would safeguard her from the physical and emotional abuse she endured at the hands of her stepfamily.
4. Altered plotline
No Dependence on the Prince:
Cinderella’s financial independence would reduce her reliance on the prince for rescue, as she could choose her own path.
Different Path to Happiness:
Cinderella might still attend the ball but with her own means, not relying on a fairy godmother to provide the necessary resources.
5. Potential for conflict and resolution
Legal Challenges:
The stepmother and stepsisters might still try to challenge the trust or exploit loopholes, potentially leading to legal disputes.
Neutral Fiduciary Trustee:
However, The bank caring for Cinderella is so vastly superior to what the step-mother did improperly depleting Cinderella’s rightful inheritance, that it is hard to imagine that a Court challenge would be successful because only separate property owned before Cinderella’s father’s marriage to her step-mother was included in Cinderella’s Trust.
Cinderella’s story would have evolved into a tale of empowerment and autonomy, where a strategically structured trust would have protected her inheritance, provided for her well-being, and allowed her to pursue her dreams without being at the mercy of her stepfamily. Estate planning, even in fairy tales, can play a critical role in shaping individuals’ lives and destinies.
Preventing Unintended Disinheritance:
Without a trust and a prenuptial agreement, assets may be unintentionally diverted to the new spouse, potentially disinheriting the children from the previous marriage.
Clarity of Asset Distribution:
The trust can clearly outline how assets will be distributed to the adult children, preventing potential disputes or misunderstandings among family members, including the surviving spouse and the new spouse.
Maintaining Separate Property:
A trust can help ensure that assets designated for the children remain separate property, preventing them from being commingled with marital assets and potentially becoming subject to division in a divorce.
Providing for the Surviving Spouse While Preserving Assets for Children:
A common strategy involves establishing a trust (like a Qualified Terminable Interest Property (QTIP) trust) that provides the surviving spouse with income or benefits from the trust during their lifetime while preserving the principal for the adult children after the surviving spouse’s death.
Safeguarding against Future Changes:
A prenuptial agreement can include provisions that require a new prenuptial agreement if the surviving spouse remarries, further safeguarding the children’s inheritance from potential future claims by a new spouse.
To Always Be a Human Being First, and My Role Second. To First, Do No Harm, then to provide the best legal outcome, smoothest process, best value, and to make a positive difference in the life of every client.
Christopher S. Mulvaney’s Mantra:
May I be filled with loving kindness for all life. May I be safe from dangers within and without. May I be healthy in body, mind, socially, and spiritually. May I be at ease and happy, doing good in the world.
May You be filled with loving kindness for all life. May You be safe from dangers within and without. May You be healthy in body, mind, socially, and spiritually. May You be at ease and happy, doing good in the world.
I am an experienced solo estate planning, debtor bankruptcy, and real estate attorney. At my law firm in Bellevue, Washington between Eastgate and Factoria, I do things a little differently. I am passionate about helping people take control of their lives.
One of my primary practice areas is urgent (bankruptcy), and the other is important, but not urgent (estate planning). Not letting the urgent crowd out the important is key. I have made a choice to include the positive difference I make in the life of each client in how I calculate profit. This means I have higher job satisfaction, and happy clients who confidently give referrals.
My goal is that my work is transformative for people during a challenging time in their lives. At Mulvaney Law Offices, PLLC (MLO), you will not find a gatekeeper. There are no forgotten cases hiding on an associate’s cluttered desk. It’s just me, working with each one of my clients one-on-one to resolve their legal concerns as favorably as possible.
As your lawyer, I will personally handle every aspect of your case. My office is not a factory churning out thousands of filings per year, where each case matters little. You, and your case, matter to me. You can see what clients have said about me, and leave your own reviews at these links.
Mulvaney Law Offices, PLLC is located in Bellevue, Washington, representing estate planning & chapter 7 and chapter 13 bankruptcy, clients in all 39 Washington Counties.
Washington State residents can meet with me in Zoom/DocuSign from anywhere in the world, and I can notarize their electronic signatures because I am a remote online notary. Just email me an image of your photo ID.
Admitted 2003 to the Washington State Bar Association (WSBA) Number 33595
Proud Member of the MetLife Legal Plans Attorney Panel Since 2007.
Broken chains at the feet of the Statue of Liberty dedicated October 18, 1886.The inside of Lincoln's jacket when he was assassinated on April 14, 1865: "One Country One Destiny"