Leaving an inheritance to your children is a natural part of the life process, and something that many people consider when planning for the future. It can be tricky however, when the son-in-law comes into the picture, as there are many factors that could work to him getting a portion of your inheritance when you would sooner see it stay within the direct family. Thankfully, there are steps you can take to ensure that your hard-earned wealth does not inadvertently fall into the wrong hands.
How do you protect an inheritance?
According to family law specialist Joseph Smith, it’s essential that those wanting to protect their inheritance plan ahead. “Having the right legal documents in place will give you the peace of mind that your assets will be split in accordance with your wishes, and not just randomly distributed by the courts,” Smith says. “This includes having a well-constructed, comprehensive Will that can be adjusted as your circumstances change.”
“You should also consider putting and trust in place as a form of ‘insurance’ as it allows you to specify who will benefit from your asset and how,” he adds. “Both a Will and trust can be legally enforced during a person’s lifetime and after death.”
How can I prevent my son in law from getting my inheritance in Australia?
It’s important to bear in mind that in Australia, the law is designed to protect the rights of married couples, no matter if it’s the husband or wife receiving the inheritance or gifting it. However, Smith points out that there are a number of ways to ensure that your inheritance does not line the pockets of your son-in-law.
“People can put in place a ‘no-delegation’ clause in their Will, which means that your beneficiaries’ rights will not transfer digitally down whatever the family relationship is,” explain Smith. “This prevents the inheritor from passing their rights onto another person.”
Another option is to tie the inheritance up in a trust, meaning your estate will not be distributed until your son-in-law has been released from it. This can help ensure the inheritance is available for investment and not spent frivolously. It’s also important, Smith says, to look into consulting a lawyer to check the validity of your documents, especially if you are leaving substantial wealth to your children.
Should parents leave inheritance?
Deciding to leave an inheritance is a personal choice, and one that should be made with due consideration. One key factor in this decision is whether or not you believe it would do more harm than good to your children.
“Looking at the pros and cons of leaving an inheritance, parents should consider how their children would need to change their lifestyles after being given the money,” Smith explains. “They should think about whether their children have the capacity to manage the funds and invest them in a way that will ensure their long-term prosperity.”
Furthermore, Smith says, looking into the future can be a handy determining factor. “Parents should also assess whether their children need the money for a specific purpose, such as starting a business or taking a well-deserved vacation after a stressful period,” he adds.
What is family inheritance?
Family inheritance is a phrase commonly used to refer to assets that are passed on from one generation to the next. This can be in the form of physical property, like land, or financial assets such as stocks and shares, as well as savings and investments.
Having a solid understanding of the legal side of inheritance planning is a useful way to be able to ensure the right people receive what is rightfully theirs. It is important that those wanting to protect their wealth get the professional help they need when it comes to putting their estate in order.
Conclusion
Leaving an inheritance is something that should be done with resolution, research, and respect for the intended beneficiaries. It is possible to protect your estate from falling into the wrong hands, and ensuring that it does not make its way to your son-in-law is of top importance.
Finding the right legal advice is key to ensure that your wills and trusts are written up in accordance with your wishes, and with the utmost care – giving you peace of mind and the security that your inheritance will go to who you intend for it to.
References
Smith, J. (2020). How To Protect Your Inheritance in Australia. LegalVision. www.legalvision.com.au/blog/how-to-protect-your-inheritance-in-australia/