After reading the recent research by Investec Investment & Wealth suggests that at least 30% of adults are unwilling to pass their money or Inheritance on to their children in case they get divorced and the money leaves the family. In fact nearly 90% of clients that we speak to in Essex, Billericay, Brentwood, Chelmsford, Basildon, Southend, Witham, Ingatestone, Shenfield say that this is a huge reason for calling us in.
We have heard clients telling us this for many many years and with the divorce rate in England at over 40%, it just might be worth considering which of your children is most likely to divorce, because on average one of them probably will (We hope not, but you just don’t know). If you have left them money, let’s hope they have a better solicitor than their spouse.
The research from Investec goes further to claim that 14% thought that an inheritance might reduce their children’s incentive to work hard, with other respondents having little faith in their children’s ability to manage money.
Now the good news for you is that their are ways to protect your inheritance from divorce or misuse and to prevent it from acting as distraction or disincentive to work. While we are making your Will it is important to consider leaving assets into a Discretionary Trust or setting one up during your lifetime. Because there are a range of beneficiaries, if managed by the right people in the right way these trusts my help to keep assets out of the clutches of the divorce lawyers as it is difficult to argue that the assets / money in the trust belongs to one particular person. The assets / money can also be held within the trust and drip-fed to beneficiaries rather than them receiving a huge lump sum. If you truly think your children cannot manage their own money (although they often can with good advice), by leaving it in a trust you can appoint someone else to manage it for them.
Give the K & Co Estate Planning team a call on 01277 841 152 for an initial discussion in the comfort of your own home with no obligation or CLICK HERE for more information about creating a trust.