Photo: Amnaj via Adobe Stock Discretionary Trusts Present Vulnerabilities to Beneficiaries Without Prenuptial Agreements
In New York, assets held in trusts established and funded by a third-party for the benefit of a spouse are excluded from the marital property estate; however, if the beneficiary has access to a discretionary trust during the marriage, certain issues may still arise in a divorce.
June 27, 2024 at 10:00 AM
8 minute read
Oftentimes, individuals who are the beneficiaries to trusts do not obtain a prenuptial agreement (a "prenup") out of a belief that their trust should protect their assets in the event of a divorce. In New York, assets held in trusts established and funded by a third-party for the benefit of a spouse are excluded from the marital property estate; however, if the beneficiary has access to a discretionary trust during the marriage, certain issues may still arise in a divorce.
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