Inheritance / will / divorce question

[tubs]

What about a hypothetical situation where you have a living parent with a house, and one child (a son).

The son is married.

The parent dies and a TT is established with the son as trustee and appointer.

A few years later the son and his wife get divorced. They have both been receiving rent as a couple from the property in the TT and have actively maintained it.

Could this property be seen as a joint asset of the marriage by the family court?

 

[Terryw]

What about a hypothetical situation where you have a living parent with a house, and one child (a son).

The son is married.

The parent dies and a TT is established with the son as trustee and appointer.

A few years later the son and his wife get divorced. They have both been receiving rent as a couple from the property in the TT and have actively maintained it.

Could this property be seen as a joint asset of the marriage by the family court?

It is possible. Especially if the one family is the only or major beneficiaries. Less so if the trust has a number of beneficiaries - eg grandchildren from different brothers and sisters.

 

[Welcome]

Don't know a great deal about wills etc however a few smart people have mentioned “Bloodline” Testamentary Trust to me. Not sure if they differ to Testamentary Trust but I'm sure google would know!

 

[wylie]

I'm not sure if there a "bloodline" trust as such but this is a term my mother used to explain what she wanted the family trust set up to be able to control. The aim is to ensure my parents' assets go to their children and grandchildren so that a divorce down the track doesn't risk assets being claimed as they could if just left to the children. It also protects grandparent assets from a remarriage and children brought into that marriage.

Of course it allows us to distribute how we like within guidelines but does offer more protection should a divorce occur or should a gold digger decide to marry for reasons other than "love". It gives choices.

 

[Terryw]

These are trusts, set up on death, where the beneficiaries are restricted to blood descendents of someone.

Also note my link above that the Family Court can over ride any trust deed and make orders on third parites - Doesn't mean it will happen, but it could.

 

[Mr. Fabulous]

Terry - mine cost me about $1,200, I think. Something like that. I remember getting a discount cause I handballed the law firm a few clients.

 

[Landlover]

Tt

To the original 'postee'' (if thats a real word)
Maybe you could be even under a false impression that the step parent may not even have an interest in claiming anything.
Are these just your personal thoughts maybe