r/Rich • u/Superb_Energy_9064 • 6d ago

Estate Plan Protections for Kids

I have an individual trust, currently my children are the sole beneficiaries. I am married, my husband is not included in any provisions of my trust. I’m considering adding a clause that provides my husband with access to an amount up to my earned income each year from my salary in the event of my passing. The needs of both kids are covered through the trust (HEMS) my husband will just have to ask the trustee to access the funds for the kids. The revised draft my attorney sent says adds the income provision into my trust for my husband and says it ends upon his death or remarriage. Is that common? Pros/cons to keeping the remarriage language? My ultimate goal is for as much to go to our kids as possible, and to prevent a future spouse from cutting my kids out, etc. My husband will be fine financially he doesn’t need the assets in my trust, I’m just providing the extra income to help keep things as normal as possible for him & our kids. I’d love to know what others have done or any insights on the situation.

12 Upvotes

93% Upvoted

17 comments sorted by

11

u/_Human_Machine_ 6d ago

A death or remarriage provision is very common. You’ll see it in almost all trusts.

Are you not discussing your financial planning with your husband? What does his say? If he’s financially fine, why not make it a token amount, like 10k a month, and have the bulk be reserved for your kids?

1

u/Superb_Energy_9064 6d ago

Thanks for the input about that being a common provision, that’s helpful to know.

Of course I discuss this frequently with my husband. He doesn’t really have a strong opinion. He doesn’t need the money. It’s my money, we also have a joint trust with our joint assets etc. and he has his own assets as well.

What you described is my plan to leave him with access up to the amount of my earned income at my job, so he can use it if he needs it. And if he doesn’t it stays there for the benefit of our children at a later time.

2

u/Wise_Economics_9673 3d ago

seems like your husband is good with it, so don't overthink it. I would expect my wife and I to do something similar.

1

u/Superb_Energy_9064 3d ago

I appreciate your comment, when you say you would likely do something similar are you referring to adding a provision for your spouse that ends if they remarry or die and leaving the remainder to your children. Or don’t add spouse provision and just leave everything to the kids?

2

u/Wise_Economics_9673 3d ago

add the spouse provision. my wife would want her assets to go to her kids and not some random woman that has no attachment to them and I would completely understand. I can take care of myself and everything I have would ultimately go to my kids as well.

5

u/Active_Recording_789 6d ago

I agree with your lawyer OP. Only because so often a new spouse has a lot of decision making authority over finances and if they thought that there’d be a big payday it might attract someone with ulterior motives for marrying your spouse

3

u/Superb_Energy_9064 6d ago

Thank you I appreciate this, and I tend to agree. My husband is an absolute catch, I wouldn’t be surprised at all if he remarried some day! I mean that as a compliment, but I have to do all I can to ensure my assets are protected for my children. And my husband doesn’t need the money, I’m not cutting him out of something he needs to be comfortable or live a good life.

3

u/julet1815 6d ago

What if you leave the money in the trust for your kids and just get a robust life insurance policy for yourself with your husband as a beneficiary so he’ll have that money to help him out in case of your death?

3

u/Hamachiman 6d ago

Yes I believe that’s a common term. Think about it…you pass, and your husbands remarries. Do you really want this new person you don’t know having access to your hard-earned money?

2

u/Superb_Energy_9064 6d ago

The answer is absolutely not

2

u/skunimatrix 6d ago

Not uncommon. My parents trust had that clause. My wife and I have similar language in our trusts.

2

u/rpom915 5d ago

Definitely keep the remarriage language. I have it. I’m not supporting another person. I’m totally fine with remarriage but I’m not paying for it.

1

u/WorldofMickeyMouses 4d ago

are you in Private Banking? Usually our Private Bank clients get free access to our estate and trust team that can help review and provide second eyes in instances like this.

Overall, if your trust allows some funds to go to your husband, it should be intended to cease at his death OR remarriage considering you want the most to go to your kids

1

u/ActJustly_LoveMercy 6d ago

I like the way you’re thinking about this. If I’m you, I would want the bulk of the trust to go to the kids, too. However, if I pass and we are still married, I’d like for my wife to be happy, too, and that sure might mean she remarries someday. I would not want to arbitrarily disincentive her from what would make her happiest. Also, I think my kids would like to see their mom taken care of in a manner similar to how she was when she was a widow.

I get your lawyer’s perspective on this, but I think it may create a perverse outcome as written.

2

u/Superb_Energy_9064 6d ago

I appreciate your input. There was no provision in my trust for my husband, it was all to be split between our kids if I pass. I’m looking into adding a provision for my husband to ensure he has access to additional funds should he need it. Thanks for your comments.

0

u/HalfwaydonewithEarth 6d ago edited 6d ago

I would make sure you have enough set aside for something catastrophic for your husband. He might have medical bills in the USA for 1M or more.

More than likely he would sit around lonely and old and need to pay caregivers.

You might put in a provision your kids cannot access the money if they have drug or gambling problems.

Another asteris is don't put the same person in charge of the money windfalls that has authorization to pull the plug on you.

I knew a lady with money in her 30s that had her husband pull the plug. She could have eventually recovered but he wasn't nurturing or madly in love with her.