📌Planning Ahead to Prevent Unintended Loss
You’ve worked hard to build a legacy—and naturally, you want your children to benefit from it. But what if your child gets married and later divorces? Could half of the inheritance you leave end up in the hands of their ex-spouse?
Unfortunately, the answer is yes—unless you take proactive legal steps.
At Alatsas Law Firm, we help families across Brooklyn ensure that inheritances stay within the bloodline and are protected from divorce, creditors, and poor financial decisions.
🧠 Can an Inheritance Be Divided in Divorce?
In New York, inheritances are generally considered separate property, which means they’re not subject to division in a divorce. However, there are important exceptions:
- If your child co-mingles their inheritance (e.g., puts it into a joint bank account with their spouse)
- If inherited property is used to buy marital assets
- If the inheritance is not kept distinct over time
In these situations, a court may treat the inheritance as marital property, making it fair game in a divorce.
📌 The line between separate and marital property is thin—and easily blurred.
🏛 Case Example: Brooklyn Inheritance Lost in Divorce
Imagine a Brooklyn father who leaves his daughter $500,000. She uses some of the funds to renovate the home she owns jointly with her husband. Years later, they divorce—and the court awards the husband half the value of the home improvements.
Because she didn’t preserve the inheritance separately, the money was treated as marital property.
This could have been avoided with a trust.
🔐 Strategies to Protect a Child’s Inheritance
The best time to protect your child’s inheritance is before you die—by working with an experienced estate planning attorney to set up proper legal structures.
At Alatsas Law Firm, we help clients safeguard wealth with the following tools:
🧾 1. Use a Trust Instead of a Will
Leaving money to a child outright through a last will and testament means they get full control once the estate is settled. That leaves the inheritance exposed to:
- Divorce claims
- Creditors
- Financial mismanagement
Instead, use a discretionary or spendthrift trust that:
- Delays full access until a certain age
- Requires trustee approval for distributions
- Keeps assets legally out of the child’s ownership
🔗 Learn the difference between wills and trusts »
🧩 2. Create a Bloodline Trust (a.k.a. Legacy Trust)
A bloodline trust ensures your assets stay within your direct descendants, even if your child divorces, dies, or becomes disabled.
Features include:
- Asset protection from in-laws
- No risk of inherited money going to an ex-spouse
- Long-term multigenerational wealth preservation
This is ideal if you:
- Have significant assets to pass down
- Want to ensure protection for grandchildren
- Have concerns about your child’s marriage
💍 3. Encourage a Prenuptial or Postnuptial Agreement
While not always easy to discuss, a prenup (before marriage) or postnup (after marriage) can clearly define inherited assets as separate property. These agreements:
- Set expectations early
- Prevent future disputes
- Add legal clarity to an inheritance
You can even make distributions from a trust conditional on signing a prenup.
🔗 Explore how we support prenups in NY »
🧾 4. Use a Lifetime Trust With a Third-Party Trustee
By naming a third-party trustee (instead of your child), you:
- Maintain full control over how the inheritance is used
- Avoid the risk of co-mingling
- Provide protections even if your child remarries
Trustees can be a trusted relative, friend, or a professional fiduciary.
📌 You can also allow limited powers of appointment so your child can make some decisions without full control.
🏠 5. Be Careful With Real Estate Gifts
If you plan to leave a Brooklyn property to your child, think carefully about:
- How title will be held (individual name vs joint with spouse)
- Whether the property should go into a trust
- If property taxes or Medicaid planning could affect inheritance
We help structure deeds and real estate gifts to preserve ownership while minimizing risks.
🔗 More on real estate in estate planning »
⚠️ Common Mistakes to Avoid
- Leaving cash outright to a child in a rocky marriage
- Failing to educate children on the importance of keeping inheritances separate
- Not updating your plan after your child gets married or divorced
- Ignoring remarriage concerns in blended families
📌 Can a Parent Require Divorce Protection?
Yes! Through trust terms, you can:
- Delay distributions
- Appoint independent trustees
- Restrict use of funds to specific purposes (e.g., education, home purchases)
These conditions are not only legal—they’re a smart way to protect both your child and your legacy.
🧠 Why Legal Guidance Matters
Every family—and every marriage—is different. At Alatsas Law Firm, we don’t believe in one-size-fits-all planning.
We help Brooklyn families:
- Customize trusts based on child’s needs and risks
- Coordinate asset protection and Medicaid planning
- Integrate prenuptial strategies into the estate plan
- Educate your heirs on how to preserve what they inherit
💬 Real Client Story
“I wanted to make sure my daughter could inherit from me, but I didn’t want her ex getting anything. Teddy created a trust that protects her no matter what happens. Now I have peace of mind.”
— Joseph P., Bay Ridge
📞 Protect Your Child’s Future—Start Planning Today
Divorce rates remain high, especially among younger couples. If you want to ensure your child’s inheritance stays in the family, you need more than just a will—you need a strategy.
📍 Serving families throughout Brooklyn: Park Slope, Midwood, Bay Ridge, Dyker Heights, and more.
📞 Call (718) 233-2903 or
🔗 Schedule your inheritance protection consultation »
