You’ve worked hard and saved diligently, hoping to leave something behind for your children. Maybe you’re thinking ahead to grandchildren as well. And while you may love your child’s spouse, it can be natural to wonder how to ensure the family wealth stays with your own child as relationships, marriages, and life circumstances evolve. Let’s discuss the steps you can take so that your legacy flows the way you’d like it to while still respecting family dynamics.
Set up a trust
A trust is a legal arrangement that helps you manage and transfer your money and other assets according to your wishes—both during your life and after your death. So, a trust can be a good strategy to help protect an inheritance and preserve control, especially when it’s drafted and administered carefully.
Each type of trust works differently and may be better suited to certain situations. Work with an attorney who understands the relevant federal and state laws and consult with your financial advisor. What matters most is that your plan reflects your intentions—how you want to support your child, protect what you’ve built, and create stability for future generations. As you may know, a beneficiary is the person or organization you designate to receive your financial benefits when you die. When you’re looking to protect an inheritance, a trust can be named the beneficiary of different financial tools, including investment assets, retirement accounts and life insurance.
In many cases, your inheritance gets stronger protection when its assets remain in the trust rather than being inherited directly by your child or grandchild. That’s because assets held in trust may be easier to keep separate from marital property, while those distributed directly could become more vulnerable if they are commingled with shared accounts or used for joint expenses.
Trusts are usually drafted with provisions that protect the trust assets from the beneficiary’s creditors (including spouses and former spouses). Unless trust language specifically includes the beneficiary’s spouse or names a child’s spouse as a beneficiary, the spouse usually has no rights to the trust assets. Because the rules vary by state and depend on how the trust is drafted and administered, it’s important to work with an estate planning attorney to structure the trust appropriately.
Have your child establish a prenup
Prenuptial agreements (prenups) are established before a legal marriage to determine who gets what money and other assets (and debt) in the case of divorce or legal separation. And they don’t always carry the same stigma they may have had in the past. In fact, more and more people are using them to set financial expectations and maintain financial security. A 2023 survey by Harris Poll and Axios found that about 50 percent of U.S. adults at least somewhat supported prenups. Prenups signed by your children can be a good strategy to protect their future inheritance—but their enforceability depends on state law, timing, disclosure, and proper drafting.
Asking your child to include the wealth that you plan to pass on to them in a prenuptial agreement can give you peace of mind. It can help ensure that the money and other assets you leave to your child will stay with them.
Discuss a postnup
A prenuptial agreement must be put in place before marriage. If your child is already legally married, another option may be a postnuptial agreement (postnup). These legal documents are similar to prenups except for their timing. As with prenups, enforceability depends on state law and proper drafting.
Providing clarity and not exclusion
Planning how to pass on your money and other assets can bring up questions that don’t always have simple answers. The strategies in this article—like trusts or agreements—can help provide structure and clarity, especially in situations when life circumstances may change over time. Because every family and financial situation is different, it can be helpful to talk with professionals who understand both the legal and financial sides of planning.
Original article published by Northwestern Mutual on 6/1/2026: https://www.northwesternmutual.com/life-and-money/can-i-leave-money-to-my-kids-but-not-their-spouses/
This publication is not intended as legal or tax advice. Financial representatives do not render tax advice. Consult with a tax professional for tax advice that is specific to your situation.
C. Robert Cox uses Continuum Wealth Partners as a marketing name for doing business as representatives of Northwestern. Continuum Wealth Partners is not a registered investment adviser, broker-dealer, insurance agency or federal savings bank. Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) (life and disability insurance, annuities and life insurance with long-term care benefits) and its subsidiaries. C. Robert Cox is an Insurance Agent of NM. Investment advisory services provided as an Advisor of Northwestern Mutual Wealth Management Company®, (NMWMC) Milwaukee, WI, a subsidiary of NM and a federal savings bank. Investment brokerage services provided as a Registered Representative of Northwestern Mutual Investment Services, LLC (NMIS), a subsidiary of NM, broker-dealer, registered investment adviser and member FINRA and SIPC. Northwestern Mutual Private Client Group is a select group of Northwestern Mutual advisors and representatives. Northwestern Mutual Private Client Group is not a registered investment adviser, broker dealer, insurance agency, federal savings bank or other legal entity.
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