These case studies, while based on actual client experiences, are intended for illustration purposes only. They should not be used as a basis for determining a course of action in any other case. The options demonstrated herein should be considered only after consultation with an experienced elder law attorney: the laws are constantly changing and, in addition, a seemingly similar situation may be subject to a drastically different result due to minor factual differences not apparent from these illustrations (in fact, more favorable options may be available due to these variables).

Fred and Wilma have been married for 45 years and have three children. Sadly their children weren’t so lucky. Wally has never been married and has no children. Ralph has been married three times and has five children. His current spouse has three of her own children as well. Sally’s marriage is rocky and a divorce very well might be in the future. Fred and Wilma are concerned that if something happens to both of them their estate would pass to their childrens' spouses and step-children along with their children and grandchildren. They wish for all of the assets to stay within the family and not pass to spouses and/or grandchildren.

Accordingly, the firm set up a Bloodline Trust with Spendthrift Provisions for Fred and Wilma. When the second of them passes away, their estate will pass only to those with direct blood links to Fred and Wilma. This means that if Wally, Ralph, and Sally were alive all assets would be split three ways. No spouse would receive any assets of the estate. If Ralph was to die before Fred and Wilma only his children by blood would receive a portion of the estate. The children of his current spouse would not be included in the estate. Lastly, the spendthrift provision of the trust would allow the Trustee to hold all portions of the estate allocated to Sally in trust until her divorce was final. That way her future ex-husband would have no claim to the money her parents left to her.

Case Studies Content