Why Inheritances Need Protection An inheritance is often intended to stay within a family or benefit specific heirs. Many states dictate that inheritances are separate property by default, even if they are received during a marriage. However, without clear legal boundaries, inherited assets can become “commingled” with marital (also called community) property, making such assets subject to division upon divorce. Read on to learn how a First prenup can help make sure your inherited assets stay secure.
How a First Prenup Protects Your Inheritance 1. Defines Inheritance as Separate Property A First prenup can specify that any assets one spouse inherits—before or during the marriage—remain that spouse’s separate property. This can include cash, real estate, investments, and family heirlooms.
2. Address How You Expect to Use Your Inheritance Whether it’s a down payment on a house, a dream vacation, or opening a new brokerage account, it’s likely that you will use what you inherit to benefit other people than just yourself. With a First prenup, you can specify whether you would like the usage of your inheritance for “family purposes” to be reimbursed in the case of divorce, akin to keeping it characterized as separate. If you would prefer, you can alternatively choose to designate usage of your inheritance for a family purpose as a gift to the marital estate (community).
3. Proactively Guard Against Commingling If inherited assets are mixed with marital (community) property (like depositing inheritance funds into a shared account), they can lose their protected status. The lawyer you choose to assist you with your First prenup can address these scenarios, stating that even if commingling occurs, the inheritance remains separate.
Why Use First (thisfirst.com) for Your Prenup? Start your prenup journey with First today and protect what matters most—your legacy and your loved ones. Book a consultation call today!
