Living Trusts And Divorce Considerations

Living Trusts And Divorce - Claiming Rightful Assets

When divorcing, most understand that they must claim all of their income and assets. However, there are always people who use any opportunity possible to hide assets and income during a divorce. A living trust is a way some people attempt to hide large amounts of money. However, there are several things that need to be considered when a living trust and divorce have both been handled.

First, you need to look at assets in the living trust and ensure that they were claimed as assets during the divorce. If not, then the spouse that does not own the property can claim that the other spouse (in this case the grantor) attempted to intentionally commit fraud against their spouse. This can end in criminal proceedings, as well as the property of the divorce being split in a much different manner than if the assets were not disclosed.

If you have a joint living trust, the assets of the joint trust will need to be split, and each spouse will need their own living trust if they so desire. There is no way to split a joint trust without actually revoking the joint living trust and creating an individual living trust for each spouse. If the joint living trust is left intact, then it makes it very difficult to split the assets of the marriage in a divorce. Most parties also determine that after a divorce they wish to have a new beneficiary than before a divorce. This is due to most people naming their former spouse as their beneficiary.

Typically, when a divorce occurs the person will want to select a new beneficiary. It is very important to remember to disclose all of the assets of your living trust when getting a divorce. This protects you from your spouse claiming that you are hiding assets, as well as ensures that you are not exposing yourself to a potential lawsuit later on for fraud. When you are dealing with a living trust and divorce, you should be very careful and ensure that the lawyer handling your divorce is well aware of your living trust.

Your lawyer should be able to give you advice about what changes you will need to make in your living trust to ensure that your assets that remain after the divorce are protected. Divorce can be a very stressful time, in order to ensure that your assets are still protected for your beneficiary it is always wise to revisit any estate planning that was made prior to the divorce. Changes may need to be made, and it is always best to find out what changes need to be made as soon as possible and have the changes made.

Just because you are going through a divorce, or considering a divorce does not mean that you are not going to be able to plan your estate. There are still tools that you can use, including a living trust. There are just some minor changes that need to be made after a divorce. With a good lawyer, you should have no difficulties in organizing your estate and ensuring that things are smoothed out following the turbulence that a divorce can cause.

Your living trusts and divorce can be easily organized and you will be able to ensure that your affairs are all in order; it just takes some simple planning. The biggest point to remember is to ensure that your divorce lawyer is well aware of your living trust in the very beginning. This is one of the most important steps you can take to ensure that your estate is well protected.