When people remarry, their estate planning may be more complicated. People often have to take into account children from their prior marriages as well as the potential for children from their second marriages when planning their estates.
Before getting married, people might want to enter into a prenuptial agreement with their new spouse. If they have already married, they could instead draft a post-nuptial agreement. In the agreement, they can include provisions regarding certain assets being transferred to children rather than to the new spouse if the marriage ends. Another thing to do is to make certain to update existing wills to reflect the life change.
Updating designated beneficiaries on life insurance policies is important. To make certain children from a previous marriage will be provided for, some people may buy new life insurance policies designating those children as the beneficiaries. They may also use irrevocable trusts to pass assets to them. Irrevocable trusts can provide a way to pass assets to designated children while also protecting the assets from creditors’ claims.
A trust may be an effective estate planning tool to use when a person remarries. It can help to pass assets as the grantor desires while being private. Assets held in trust also may be shielded from the probate process. They can be used to provide for minor children until they reach certain milestones, such as graduating from college or reaching a certain age. People who are preparing to remarry may thus want to meet with their estate planning attorney in order to discuss any existing estate plans and what they need to do. Legal counsel may help by updating plans and may also recommend additional documents that may be appropriate.