Remarrying after divorce or the death of a spouse can feel like a new beginning in life. Spouses decide to share their lives, families and assets with one another. Those looking forward to the future when beginning a second marriage may not want to focus on the negative or the details of what happens next. However, planning for the possibility of unfortunate circumstances is crucial for the protection of the new family unit.
Those starting blended families typically need to establish robust estate plans as a way of protecting themselves and their loved ones. What does estate planning when remarrying often require?
Clear intentions for different beneficiaries
Basic estate plans that involve an equal distribution of assets among beneficiaries may not be appropriate for those starting a second marriage. Especially when they have children from a prior relationship and their spouse does too, each relationship requires careful consideration for the creation of an effective estate plan.
People have to consider whether they want to leave an inheritance for their stepchildren and what impact their spouse’s protection and inheritance might have on their children. Deciding exactly what each beneficiary should receive is a crucial element of estate planning for a blended family.
Documents beyond a simple will
Those with straightforward estate planning needs can rely on basic documents. Those starting a second marriage often need more than just a will. They may require a trust to protect their children and their inheritance. It is possible to protect a spouse’s right to remain in the marital home while protecting the right of the children to inherit the property eventually.
They may also need to establish powers of attorney and advance directives. Those documents can be crucial in a medical emergency scenario. Otherwise, their children and their spouse may end up disagreeing about what decisions to make and who has the authority to make those decisions. The conflict that arises could do permanent damage to the relationships within the family.
Naming an agent other than a spouse can often help ease that tension and preserve the blended family unit in a difficult situation. It may also be necessary to update beneficiary designations for life insurance policies and to alter transfer-on-death designations for major financial accounts.
In some cases, people even decide to negotiate prenuptial or postnuptial agreements with a new spouse to strengthen their estate planning efforts. Transparent communication with family members and beneficiaries is of the utmost importance so that everyone has realistic expectations.
Those who take the time to establish thorough estate plans can enjoy a second marriage with fewer concerns about future complications. Drafting or updating estate planning documents after major life changes, including remarriage, is likely to be beneficial for a testator and the people closest to them.