When assets are distributed to beneficiaries “absolutely”, i.e. they receive cash, property or other assets directly, these assets are considered to be part of the beneficiary’s estate and are at risk from any future divorce settlements, creditors and taxation.

For example, if your son or daughter get divorced after receiving their inheritance it is likely that their spouse will receive half of what you left your child in their divorce settlement; this may not be what you originally intended.

If you leave your assets to your spouse and they require residential care, there is a risk that your wealth will be used to pay for their care fees, reducing the amount your beneficiaries could receive.