When thinking about how to best pass on a lifetime of accumulated assets, many Pennsylvania residents consider taking shortcuts to make things easier for their children or grandchildren to inherit property or wealth. In many cases, however, these shortcuts can result in financial devastation. When it comes to protecting assets and passing down wealth, trusts are a solid choice.
Consider, for example, a parent who wants her two adult children to inherit her home, which is fully paid off. She places the kids on the deed to the property and discusses the matter with them in depth. However, when her son later goes through a divorce, his wife is entitled to a share of his interest in the home. That can leave the son in serious financial straits. In the worst case scenario, such an event could force the sale of the home, leaving the mother with no place of residence and both children with a depleted inheritance.