One of the motivations for creating a trust is to protect assets in many different situations including when a beneficiary gets divorced. There was a recent case in Massachusetts that might undermine the use of trusts to protect assets from attacks when a beneficiary is divorced. This article discusses some of the practical steps that practitioners should follow in all jurisdictions to protect trust assets from attacks by the ex-spouse of a beneficiary. It is a good idea to apply the modern trust planning and drafting techniques that are listed in this article because a typical or traditional trust is unlikely to provide the beneficiary with the desired protection. The jurisdiction that a client moves to will also have an impact on the trust. Client’s should review their existing trusts and follow the checklist of lessons that are provided at the end of this article.
See Martin M. Shenkman, Safeguard Trusts from Future Ex-Spouse of Beneficiary, Wealth Management, January 5, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
