When it comes to trusts, there are all sorts of relevant issues to take into consideration, such as how the end of marriage could affect the distribution of an estate following someone’s death. Whether you have a revocable or an irrevocable trust, it is important to take a closer look at your estate plan if you are planning on filing for a divorce or have already brought your marriage to an end. Moreover, if you have an irrevocable trust, there are special considerations that apply to your circumstances.
Setting up an irrevocable trust may be a good idea for various reasons, such as protecting assets from property division in the event that you split up with your spouse. If you have done this beforehand and are now looking at a divorce, you may be glad that you decided to plan ahead. However, it is important to bear in mind that irrevocable trusts are permanent, which is why some people opt for a revocable trust.
Sometimes, people fail to take into account how a divorce could affect their irrevocable trust while they are setting it up, which could upset them should their marriage come to an end. For example, those who do not address the topic of divorce in their irrevocable trust may find that their former spouse is able to gain access to assets from the trust even though the marriage has ended.
Divorce can affect any estate plan significantly, so it is important to thoroughly assess your circumstances regardless of the type of estate plan you have. Our estate planning page has more related to irrevocable trusts.