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Protect Assets Held in a Spendthrift Trust From Divorce

A prenuptial agreement may be the answer.

It’s a common misconception in the estate-planning community that assets held in a spendthrift trust are protected against claims in a divorce. It’s also a common misconception that setting up a spendthrift trust for your client’s children’s share of the family wealth obviates a prenuptial agreement (prenup). When contemplating marriage, one of the most unpleasant tasks is to ask the spouse-to-be to sign a prenup. If assets are protected from creditors and transfer taxes (estate, gift and

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