Asset Protection Trusts Better Than Prenuptial Agreements

Earl E. Watson III (Managing Principal, North American Management) and D. Sean McDade (Director of Client Services, North American Management) recently published their article entitled Beyond Prenups, Private Wealth, May 2010. 

An excerpt from the beginning of the article is below:

With roughly half of all marriages in the United States ending in divorce, it’s no surprise that the prenuptial agreement has become a popular way for individuals to protect their assets in case their one true love should one day become their ex.

But despite the popularity of such agreements, there are no guarantees the prenuptial approach will provide the expected protections. Too often, such agreements don’t work because they overlook important assets, are challenged in court as unfair or ignore the impact on children and other family members.

Indeed, those looking for premarital protection may do better by exploring the advantages of asset-protection trusts. These trusts can be used in place of—or in some cases combined with—a prenuptial agreement. In the long run, such trusts often turn out to be cheaper, significantly more effective and less emotionally charged than the typical prenuptial agreement.

Special thanks to Jim Hillhouse (Wealth Counsel) for bringing this to my attention.