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Question for married folks - receiving inheritance
Posted on 7/20/19 at 9:05 am
Posted on 7/20/19 at 9:05 am
this isn't a direct issue for me right now (not married) but i'm curious about this in the future (when i am presumably married)
if you inherited money or property while married, did you just lump it in with your community property/marital assets? did you intentionally keep it separate to avoid any comingling?
i was thinking of just putting any potential inheritance into an investment account with the elevated basis and/or money market account and treating it as a completely separate asset
i get the whole "when you get married it's our stuff" but it's inheritance. if it's beyond money it gets even more complicated (family companies, land, etc). in an investment account, you can always say that it's for retirement (assuming marriage lasts).
the issue with an investment account would be having your spouse sign off on saying the fruits are separate, though. i guess there isn't a way to avoid conflict.
if you inherited money or property while married, did you just lump it in with your community property/marital assets? did you intentionally keep it separate to avoid any comingling?
i was thinking of just putting any potential inheritance into an investment account with the elevated basis and/or money market account and treating it as a completely separate asset
i get the whole "when you get married it's our stuff" but it's inheritance. if it's beyond money it gets even more complicated (family companies, land, etc). in an investment account, you can always say that it's for retirement (assuming marriage lasts).
the issue with an investment account would be having your spouse sign off on saying the fruits are separate, though. i guess there isn't a way to avoid conflict.
This post was edited on 7/20/19 at 9:09 am
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Posted on 7/20/19 at 9:07 am to SlowFlowPro
We keep Inherited assets separate, for now. But I'm in my 60's so we're at the stage where it is just there for my wife if/when she needs it.
This post was edited on 7/20/19 at 9:11 am
Posted on 7/20/19 at 9:12 am to SlowFlowPro
I anticipate my wife’s inheritance to be vastly larger than mine (if I get one at all). I intend to have her keep anything liquid for herself (assuming she doesn’t try to blow through it, but that’s unlikely) in case I die, we divorce, etc. If we end up with a house we live in, that will be more complicated, as I imagine my income would be primarily responsible for taxes, upkeep, repairs, etc. I’ve decided that the hypothetical makes my head hurt, so I’m going to cross that bridge if/when I come to it.
Posted on 7/20/19 at 9:30 am to Joshjrn
i hear you on the house. my mom seems to be interested in shedding herself of stuff before death. she's living with my sister in TX now and owns their home with the sister's husband. in her mind, the down payment + expected payments are equal to her home in LC and last i heard she wants to give me and the brother the LC house and my sister gets all her equity in the TX house
i'm thinking of possibly forming an LLC with a 3-way split and having the house become property of the LLC.
she also has some land on the family land, a share of unincorporated farm land, and shares in the family farm corporation. i really don't think that stuff is my future wife's at all. our potential kids? sure. but her's? no way
i'm thinking of possibly forming an LLC with a 3-way split and having the house become property of the LLC.
she also has some land on the family land, a share of unincorporated farm land, and shares in the family farm corporation. i really don't think that stuff is my future wife's at all. our potential kids? sure. but her's? no way
Posted on 7/20/19 at 9:35 am to SlowFlowPro
According to our attorney, inherited money/property are not “community property”. They belong solely to the party it was gifted to. They can elect to share but not automatically considered as equal property. If your gifted spouse has children then that complicates it further.
Posted on 7/20/19 at 9:38 am to zuluboudreaux
quote:
According to our attorney, inherited money/property are not “community property”
*prior to commingling
quote:
They can elect to share
the point of this thread is how people handle that. i imagine many partners want the inheritance lumped into the community regime, which then, effectively, makes it community.
also, fruits of inherited property can be construed as community.
Posted on 7/20/19 at 10:25 am to SlowFlowPro
quote:
also, fruits of inherited property can be construed as community.
You have more experience than me in this and I only ever studied LA estate law for the few weeks leading up to the bar, but I don't get this.
What is the rationale that says fruits of separate property should become community property?
Posted on 7/20/19 at 10:29 am to JohnnyKilroy
I had to check on this but it's right
it's b/c the fruits are considered income, effectively. our community property laws are idiotic in the modern context of working women
it's b/c the fruits are considered income, effectively. our community property laws are idiotic in the modern context of working women
Posted on 7/20/19 at 1:28 pm to SlowFlowPro
My husband invested his inheritance and we have kept it separate, with me listed as the beneficiary. I have not yet inherited anything. I'm sure we will do the same with mine.
Posted on 7/20/19 at 1:53 pm to SlowFlowPro
quote:
*prior to commingling
That’s the part that I always wondered about.
Pretty much every inheritance is going to incur expenses (even if only taxes), which will be paid by marital assets.
Does that effectively commingle the asset?
If you pull money to cover its own taxes, does that become interpreted as expected income into the marriage.
It seems so easy to contaminate the asset that the only way to keep it safe from an extremely liberal judicial ruling at a divorce proceeding is to almost form a trust run by a lawyer.
Posted on 7/20/19 at 2:14 pm to SlowFlowPro
Feels like something that won't matter in the end if it's just money because my wife isn't crazy and it'll end up with my son/future children once we're both dead.
If you inherit something more tangible like a business or your wife is a psycho who selfishly would spend the money before your kids can get it, then I'd worry about the technicalities of this.
If you inherit something more tangible like a business or your wife is a psycho who selfishly would spend the money before your kids can get it, then I'd worry about the technicalities of this.
Posted on 7/20/19 at 2:27 pm to Teddy Ruxpin
quote:
If you inherit something more tangible like a business or your wife is a psycho who selfishly would spend the money before your kids can get it, then I'd worry about the technicalities of this.
Its not unheard of for women to go into divorce proceeding looking for an easy split to be talked into fighting for every single scrap they can by their lawyer.
Seems no harm in looking to see what insulation you can give it, or at least to be aware of what acts can be considered commingling in your state.
Otherwise you can easily find it not going to your kids at all, but to pay off a house for her and her new hubby.
Posted on 7/20/19 at 2:34 pm to Teddy Ruxpin
quote:
If you inherit something more tangible like a business or your wife is a psycho who selfishly would spend the money before your kids can get it, then I'd worry about the technicalities of this.
it's not about being psycho
tons of couples would love to get some random windfall to use on shite they think they have to have. it doesn't have to be crazy, it can be super practical like a downpayment on a house. the problem is that house becomes a toxic asset in terms of the community (over time)
and yes I am thinking about this super long term which means it may become inheritance of our kids or it may become a highly contested asset in divorce proceedings. you never know
Posted on 7/20/19 at 3:56 pm to SlowFlowPro
If you co-mingle it with community property, it becomes community property. If you keep it separate, it remains as separate property.
Posted on 7/20/19 at 5:24 pm to Volvagia
I guess. I know how my wife is about finances and our son so it's just not an issue for me.
I mean, so what if she buys a house for her new husband? My son will live there. That's just the way it goes once you've mixed your shite up like that. People have to move on and your kid needs a home.
If you want to keep those assets separate you should keep them separate in every way.
I mean, so what if she buys a house for her new husband? My son will live there. That's just the way it goes once you've mixed your shite up like that. People have to move on and your kid needs a home.
If you want to keep those assets separate you should keep them separate in every way.
This post was edited on 7/20/19 at 5:35 pm
Posted on 7/20/19 at 5:25 pm to SlowFlowPro
quote:
tons of couples would love to get some random windfall to use on shite they think they have to have. it doesn't have to be crazy, it can be super practical like a downpayment on a house. the problem is that house becomes a toxic asset in terms of the community (over time
Wait. They used the inheritance to buy the house? Well as we lawyers know, that's on him for commingling it like that.
If I use an inheritance on a house for us I go into that decision with eyes wide open knowing I'm pushing it's status towards community property. I can imagine some of your clients don't do that though.
But I also realize I've also provided my child a roof over his head that he'll continue to benefit from and probably inherit down the line. I'm just zen with it I guess.
Have to admit my wife is highly productive in her own right so that changes things.
This post was edited on 7/20/19 at 5:37 pm
Posted on 7/20/19 at 6:17 pm to SlowFlowPro
Related question: if inherited assets are kept separate, that person dies without a will (Louisiana) does the spouse inherit or children only?
Posted on 7/20/19 at 6:36 pm to Pussykat
Depends on ages of children
Posted on 7/20/19 at 8:10 pm to SlowFlowPro
My wife's parents have communicated with us about a large inheritance. We've shrugged off the info for now, but when the time comes, we've discussed the money going toward the kids' college funds (even grad school), future potential issues (unexpected medical or inflation) during retirement, or simply investing it to be passed on to our kids/grandchildren. Our financial plan is looking good, so there's no reason to think we need to use her parents' money to elevate our standard of living to something more...luxurious.
We've always combined our income and finances, and we'll be doing the same with any inheritance we receive from either set of parents. However, I've already prepared myself to not mind if she decides to do something else with the money like charity or investing it or something on her own. As long as it's not some psycho reason, it's not my money. But I don't anticipate her wanting to keep it from me.
We've always combined our income and finances, and we'll be doing the same with any inheritance we receive from either set of parents. However, I've already prepared myself to not mind if she decides to do something else with the money like charity or investing it or something on her own. As long as it's not some psycho reason, it's not my money. But I don't anticipate her wanting to keep it from me.
Posted on 7/21/19 at 12:20 pm to SlowFlowPro
quote:
(not married)
quote:
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