A woman and her husband own substantial real estate holdings together. She has children from a previous marriage. Her husband agrees to a trust but insists on being its administrator.
This arrangement raises concerns about asset distribution. The husband’s control could limit the children’s access to their fair share. Estate planning experts recommend separate, independent trustees.
A trust can protect assets for the children. However, a spouse serving as trustee creates a conflict of interest. The wife’s children might not receive what is intended.
Legal options include a qualified terminable interest property trust. This trust provides income for the surviving spouse while preserving principal for the children. It requires careful drafting.
Another option is a bypass trust. It shelters assets from estate taxes and directs them to the children. The surviving spouse retains limited access.
The couple should consult an estate planning attorney. They need to balance the husband’s desire for control with the children’s inheritance rights. A neutral third-party trustee often resolves this conflict.
Proper planning now prevents disputes later. The children’s interests must be formally protected. The wife should discuss her goals openly with legal counsel.
