I have a living trust that has my two children as equal beneficiaries. If they get divorced does the inheritance become part of the settlement? Besides a prenuptial agreement is there a way to avoid this? I hate to think that someone else will be a part-owner of my house.

This type of question, while not common, is posed to financial planners more often than you might think, said Julie Jow, president of WM Strategies LLC, a registered investment adviser in Honolulu.

"People hear stories where the ex-spouse gets half of the property," Jow said. The parent's "intention is to leave the child in the best position and not cause any friction."

Jow, while counseling clients on general issues involved in such cases, refers clients to estate-planning attorneys who can produce documents that can stand up in court.

The first line of defense would be an ironclad prenuptial agreement in which the real-estate question is dealt with before the children get married, attorneys said.

In this case, and as many parents find out, such an agreement isn't always possible. While they might recommend it to their children, the advice is often ignored.

"I've had clients where the parents have told the kids to get one and none of the five kids got one," said estate-planning attorney and certified public accountant Rex Matsumura.

Barring a prenuptial agreement or changes to the living trust, the property involved would become an issue during divorce proceedings, said Darren Wu, an attorney who has been doing divorce litigation for more than 11 years.

It's possible without a prenup agreement that an ex-spouse could receive a portion of the appreciation of the inherited assets or half of the inherited assets depending on how they are classified at the time of divorce, Wu said.

"If they get married to somebody it's not guaranteed to protect the property they've inherited," Wu said.

Matsumura said options could include revising the trust so that a sub-trust for each child is created when the parent dies.

The sub-trust could stipulate that it continue to own the real estate during the child's lifetime. Matsumura said distributions from it could be made for the child's educational needs, support and medical costs at the discretion of a trustee.

The remainder of the trust would go to the grandchildren when the child dies, Matsumura said.

Matsumura and Wu said getting income or payments from the sub-trust could raise other issues to be considered in divorce court, though. Wu recommended the parents ask that the estate-planning attorney consult with a divorce lawyer when amending a trust to protect assets in divorce.

In any event, passing on real estate to more than a single child can pose problems. Children can differ on what should be done with the property.

"Especially if one wants to keep the house and one wants to sell it," Jow said. Depending on the circumstances, the parents might want to discuss with their children what should occur, she said.

Matsumura said the problem is a recurring one in Hawai'i, where many parents want children to hold on to property. But when two or more kids are involved, questions arise about who pays for the home's upkeep or improvements and whether one of them can live in the residence.

He said trusts can include directions on how these issues should be treated, but they add to the cost of drafting or amending the document.

"The simplest solution is to require the property to be sold," Matsumura said. The proceeds could then go into a sub-trust, he said.