The threat to your estate if your beneficiaries get divorced
This is not something that anyone necessarily wants to think about, but in life we need to plan ahead for events that we never want to happen. In this case we are looking at the threat to your estate if your beneficiary gets divorced.
For example; if in your Will you gift your assets absolutely on death, a subsequent divorce amongst your children or grandchildren could result in a portion of your estate being taken by your beneficiary’s ex-spouse as part of a divorce settlement.
This is because you have given your assets absolutely so it forms part of the assets that the judge will assess and share out on divorce.
No one would want that to happen.
Through the use of Trusts, you can protect your assets to ensure that they cannot be taken by ex-spouses on divorce and retained within your family for the ongoing benefit of your children or grandchildren.
See other potential threats to your estate here.