Required

Trust Assets in a Divorce, Elder Law Attorney, Woodstock, GA


When a couple gets divorced, marital property is equitably distributed between them. However, as a Florida case illustrates, that is not always the case when the assets are held in an irrevocable trust.

A man in Florida settled an irrevocable trust with his wife and children named as the beneficiaries. Assets were transferred into the trust including the couple’s home. They later decided to get divorced.

If the couple still owned the home outside of the trust, then it would have been used as part of an equitable property division between them. A Florida trial court determined that was also the case with the irrevocable trust and ordered that the trust’s terms be modified and the assets equitably divided.

The appellate court disagreed, however, and determined that the trust could not be modified and the assets divided in the divorce.

The Wills, Trusts & Estates Prof Blog discussed this case in “Equitable Distribution for a Couple’s Irrevocable Trust?

The lesson is that sometimes estate planning techniques can become problems when circumstances change. One thing to think about when planning your estate are some of the things in your life that could possibly change, so you can make sure your estate plan can be adapted to them easily.

Another lesson to learn from this case is that when getting divorced, you need to get your estate planning attorney involved, since you will need to redo your estate plan in an appropriate way.

This case was in Florida. Since both trust and divorce law are matters for the individual states, the laws might be different in your state.

Seek the advice of a local attorney to learn what the law is in your state.

Reference: Wills, Trusts & Estates Prof Blog (Dec. 23, 2016) “Equitable Distribution for a Couple’s Irrevocable Trust?

 

Hear From Our Clients
tes-prev
tes-next

I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

- Kerri

Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce

Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!

- Marcia

I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!

- Ben