9 Estate Planning
Testamentary trusts
Asset protection example
In a different scenario, let’s say you are married with no children. You're having relationship issues with your spouse and are looking at getting a divorce.
Your uncle dies and you receive $2.5 million.
This inheritance could now form part of the financial assets looked at for divorce settlement.
If the inheritance was segregated into a trust, it may remove the estate proceeds from the financial settlement of the divorce, protecting your uncle’s wishes.