How does leaving my assets to a trust protect my children if they get divorced?
Video will appear soon
On death the assets are passed to a trust which has multiple beneficiaries. For example, children and grandchildren are usually the beneficiaries. The trustees(usually your adult children) agree to lend the money to one of the adult children at no interest and repayable on demand by the trustees and there is a legal agreement drawn up, signed and witnessed.
In the event of a divorce the loan is withdrawn back to the trust ( as the money was only loaned and always belongs to the trust). After a divorce is settled the money can be reloaned back to the same beneficiary.
