Inheritance Law: Daughter-In-Law's Rights From Mother-In-Law

Inheritance is a complex issue that is dependent on many factors, including the existence of a will, the state or country in which the deceased resided, and the nature of the relationship between the deceased and the potential heir. In the case of a daughter-in-law inheriting from her mother-in-law, several scenarios could play out. If the daughter-in-law's spouse (the mother-in-law's child) predeceases the mother-in-law, the daughter-in-law may inherit assets that belonged to her spouse. However, she would not inherit directly from her mother-in-law unless included in the will or trust.

Daughter-in-law inheriting from mother-in-law without a will

In the United States, the laws of intestate succession determine how a person's estate is distributed after their death if they die without a will. These laws vary by state but generally prioritize the closest relatives of the deceased, such as their spouse and children, for asset distribution.

In-laws, including daughters-in-law, are not classified as heirs according to intestacy laws in any state. This means that if a person dies without a will, their daughter-in-law will not directly inherit any part of their estate. However, if a person's child inherits a portion of their parent's intestate estate, the property legally belongs to them, and marriage does not change this ownership.

While a daughter-in-law does not have a direct right of inheritance, she may still benefit from her mother-in-law's estate if her spouse (the child of the deceased) chooses to share the inherited assets with her. Once the property is received by the child, they can use it however they wish, and they are not legally obligated to share it with their spouse. However, if the child uses their inheritance for the benefit of their spouse or family, it may become designated as matrimonial property, which is typically divided equally between married spouses in the event of a divorce.

To prevent a daughter-in-law from inheriting any part of their estate, a person can create a will that specifies how their assets should be distributed. They can also consider setting up a trust to distribute portions of their estate to their children or grandchildren, rather than their in-laws. Additionally, the child of the deceased can take steps to keep their inheritance separate from matrimonial property, such as by creating a Mutual Will and Trust Declaration with their spouse or entering into a post-nuptial agreement.

Daughter-in-law inheriting from mother-in-law with a will

In the context of inheritance, a daughter-in-law is generally considered an in-law, and in-laws typically have no right of inheritance. This means that if a mother-in-law passes away without a will, her daughter-in-law will not inherit any of her estate. Similarly, if the mother-in-law has a will, the daughter-in-law has no right to inherit unless she is specifically named as a beneficiary.

However, it is common for a mother-in-law to want to leave a gift to her daughter-in-law as a token of affection. In such cases, the mother-in-law can name her daughter-in-law as a beneficiary in her will. It is important to note that even if the daughter-in-law is no longer married to the mother-in-law's child at the time of death, she will still be considered a beneficiary if the will is not updated prior. This could potentially result in the mother-in-law's wealth passing outside of the family if the daughter-in-law decides to leave her inheritance to a new spouse or children from a new marriage.

To prevent this, the mother-in-law can consider establishing a trust. A trust gives the mother-in-law more control over how her assets are distributed by allowing her to set conditions on how the inheritance is used. For example, she can specify that the inheritance is only for her child, with instructions that it should be managed by the daughter-in-law as a trustee. Alternatively, she can create a family trust that excludes non-blood relatives from receiving assets.

Another option is to encourage the child to draft a prenuptial or postnuptial agreement with their spouse. This agreement can outline how any assets inherited from the mother-in-law should be handled, both during her lifetime and beyond. For example, the agreement can stipulate that the inheritance must revert to the mother-in-law's estate after the child's death, instead of passing to the daughter-in-law. However, it is important to note that attempting to control how an inheritance is used after it has been gifted may violate the Rule Against Perpetuities, a legal principle that prevents "dead hand control".

In summary, while a daughter-in-law typically has no right to inherit from her mother-in-law, the mother-in-law can choose to include her in the will or establish a trust to ensure her daughter-in-law receives an inheritance. To prevent the daughter-in-law's spouse or stepchildren from inheriting, the mother-in-law can encourage her child to keep the inheritance separate from matrimonial property or consider other estate planning strategies with the help of a qualified legal professional.

Daughter-in-law inheriting from mother-in-law as a trustee

In-laws typically have no right of inheritance. However, if you die without a will, your assets will be distributed according to the laws of the state in which you reside. These laws usually classify the spouse as a primary heir, entitling them to a portion of the deceased spouse's estate. Therefore, if your child dies soon after you, their spouse (your daughter/son-in-law) will likely receive their share.

To prevent this indirect inheritance, you can create a trust that names your child as the primary beneficiary and trustee during their lifetime, with any remaining assets going to your grandchildren after your child's death. This arrangement is known as a Bloodline or Marital Trust. It ensures that your assets are protected from your child's creditors and shielded in the event of a divorce, preventing them from becoming matrimonial property.

For example, consider a couple with an estate worth $500,000 and one married child with two children. A typical estate plan would give the entire inheritance to the child. However, with a Bloodline Trust, the $500,000 is held in trust for the child's benefit, allowing them to control investments and distributions. Upon the child's death, the unused assets pass to the grandchildren, keeping the wealth within the family.

Another option is for your child to make a Mutual Will and Trust Declaration with their spouse. This type of will is irrevocable upon the death of one spouse and can help keep the inherited property separate and apart from matrimonial property. However, it requires independent legal advice for both your child and their spouse, making it a costly endeavour.

Daughter-in-law inheriting from mother-in-law as a beneficiary

In the United States, in-laws have no automatic right of inheritance. If you die without a will, your in-laws will not inherit your estate. Similarly, if you die with a will, your in-laws have no right of inheritance unless you specifically name them as beneficiaries.

However, your daughter-in-law may inherit part of your estate indirectly through her spouse, your child. If you leave money or assets to your child, their spouse would generally be entitled to receive at least a portion of those assets should your child pass away. This would be true whether your child had a will in place or not, as state inheritance laws automatically defer to spouses. Even if your child did have a will, they could not use it to exclude their spouse from inheriting. State laws do not permit the exclusion of spouses unless the spouse gives their express written permission.

If you want to leave money to your child but not your daughter-in-law, establishing a trust may be the best way to do it. You can set up a trust and name your child as the sole beneficiary, then include instructions on how the trust assets should be managed. You can also name the trust as the beneficiary to retirement accounts or a life insurance policy, where they can be administered by a trustee rather than being passed to your child directly.

There are several types of trusts that can be established to protect your assets and ensure they stay in the family. A Bloodline Trust, for example, will hold assets in a trust for the benefit of your child. Your child can be their own trustee and control the investments and decide how the money is distributed. A Marital Trust can also be established to benefit your child during their life, but upon their death, the assets will be mandated to pay to your grandchildren and not your daughter-in-law or her children.

If you name your daughter-in-law as a beneficiary or a contingent beneficiary of your estate, they will still be a beneficiary even if they are no longer married to your child at the time of your death, unless you update your will prior to your death. If you leave your child's inheritance to your daughter-in-law in the event that your child predeceases you, there is a potential that your grandchildren may be cut out. Your daughter-in-law may remarry and decide to leave everything she received under your will to a new spouse or to children of the new marriage.

There are other ways to show your affection for your daughter-in-law without running into issues. You can prepare a letter of wishes to your children or discuss directly with your child your hope that some of their inheritance would be shared with their spouse. In some cases, if a family trust is set up for your child under your will, you can direct that the income can be paid to their spouse while the capital is preserved for your child and grandchildren.

Daughter-in-law inheriting from mother-in-law: protecting assets

In-laws typically have no right of inheritance. This means that if you die without a will, your in-laws will not inherit your assets. Similarly, if you die with a will, your in-laws have no right of inheritance unless you specifically gift something to them in your will.

However, your daughter-in-law may still indirectly inherit your assets through your child's inheritance. If your child keeps their inheritance separate from their spouse, it will not form part of what is called "matrimonial property". Matrimonial property is property that is used for the "family" and is divided equally between married spouses when there is a breakdown of the relationship. Although the property was received through the deceased spouse's family, the surviving spouse does not have any obligation to use that property for the benefit of the deceased spouse's children.

To prevent your daughter-in-law from inheriting your assets, you can discuss with your child different techniques to keep the property separate from matrimonial property. For example, your child could make a Mutual Will and Trust Declaration with their spouse. A Mutual Will is irrevocable upon the death of one of the spouses and has several other unique characteristics and requirements. Alternatively, your child could enter into a pre-nuptial or post-nuptial agreement with their spouse to keep the property separate. These options require independent legal advice and are therefore expensive.

Another method to protect your assets is to place them into a trust that names your child as the primary beneficiary while they are alive, followed by your grandchildren as beneficiaries upon your child's death. This can be done while you are still alive or through a will that creates a trust for this property. The Bloodline Trust and the Marital Trust are two important types of trust that you should consider in your estate plan.

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