How to Keep Family Wealth Safe, Even When Life Changes

When safeguarding family wealth, it’s usually the minor errors, not major oversights, that cause the most significant harm. These slip-ups often stem from love, good intentions, and wanting to do what feels right at the time.

Sadly, these well-meaning decisions can put years of careful planning at risk.

The Risk of Joint Ownership and Commingling

A typical scenario: someone inherits a house or an investment account and, out of caution, adds their spouse’s name to the title. Or perhaps they transfer inherited money into a joint bank account without a second thought.

By doing this, they unknowingly convert separate property into marital property, making it vulnerable to division in a divorce. Such a simple step can undo the protection that estate and asset planning were meant to provide.

Why Structure Matters

Inheritance protections remain effective only if the proper structure is consistently upheld. Even with a trust, those safeguards can disappear if assets are removed from the trust, transferred improperly, or not kept up-to-date as circumstances change.

This isn’t about hiding things or being wary of your spouse; it’s about honoring the purpose of your estate plan and ensuring lasting security for your family for generations to come.

What You Can Do

• Keep inherited assets distinct. Set up individual accounts and consider joint ownership only after consulting with a professional and obtaining legal advice.
• Don’t mix funds. Maintain inherited funds in a separate account to preserve their identity as individual property.
• Revisit your estate plan frequently. Significant life events, such as marriage, having children, or acquiring new assets, can alter your needs.
• Consider trusts for extra security. Trusts offer robust protection for family wealth, shielding it from divorce, lawsuits, and creditors when properly established and managed.

Estate Planning Isn’t Set-and-Forget

Think of your estate plan as an evolving strategy. It requires ongoing attention, just like your financial or health plans. As your family changes and grows, it becomes increasingly important to keep everything up to date and in sync.

Let’s Make Sure Your Protections Still Work

If you’re uncertain whether your assets have the proper protection, or if recent events may have put your family’s legacy at risk, it’s a good idea to schedule a review now.