A 47-year-old woman received $3.2 million from her father.
He set up a trust to “protect the kids”
1/3 at 30, 1/3 at 35, 1/3 at 40.
She’s 47. Every dollar had been distributed all at once.
Not long after her dad died, her husband of 22 years filed for divorce. Now half of her father’s money is community property, going straight into a divorce he never saw coming.
His attorney told him it would protect his children. It did… until they turned 40.
After that? Just a giant unprotected gift with extra steps.
Nobody told him.
Many families I work with have that crazy son or daughter-in-law they just don’t trust. Even harder are the ones they actually love, where the divorce comes out of nowhere and blindsides everyone.
If you have kids and you’re worried about divorce, remarriage, or creditors, age-based trusts often fail exactly when protection is needed most.
Better options exist: dynasty trusts, lifetime QTIPs, or discretionary trusts with independent trustees can actually shield the money long after 40.
Don’t let good intentions create expensive mistakes.
Not legal advice cosult a qualified attorney.