The possible breakdown of a child’s marriage is a concern for many parents when doing their estate planning. I recently met with Ethel (not her real name) in my law office in Stittsville near Ottawa. While discussing her estate planning, Ethel confided that she was concerned her daughter’s marriage might be on rocky ground. In particular, she wondered if her daughter would have to give half of what she receives from Ethel’s estate to her husband in the event their marriage breaks down.
I explained to Ethel that in 1986, it became possible to allow beneficiaries of an estate to protect their inheritance from claims by a spouse who is leaving (or has left) the marriage. The beneficiary must keep the inheritance clearly separate from assets of the marriage right from the day the inheritance is received. Although a beneficiary has the right to exclude an inheritance from a division of assets on marriage breakdown, unless the Will of the testator specifically says so, the increase in value of the inheritance (income) cannot be excluded. If the Will was drafted before 1986, it is highly unlikely that such a clause has been included.
Ethel was relieved to know that it was possible for her daughter to protect her inheritance. She said she would make sure her daughter was aware that her inheritance must be kept separate from the assets of the marriage.
If you are concerned about how to protect a child’s inheritance in the event of a marriage breakdown, contact our office today to make an appointment to meet with one of our lawyers. We will review your unique situation and your options so you can decide how best to provide for your loved ones.
Reproduction of this blog is permitted if the author is credited. If you have questions or if you would like more information, please call us at 613 836-9915. This blog is not intended to be legal advice but contains general information. Please consult a lawyer or other professional to determine how the information in this blog might apply to you.
Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.
