What Is Fair in A Second Marriage and Estate Planning?

For a lot of couples, estate planning in a first marriage can be exhausting and challenging for planning out. Nevertheless, in the event of a second marriage, the process becomes even more challenging. While in the first marriage both spouses usually have the same objectives, a second marriage can create differing objectives on inheritances, financial plans, long-term care, and a lot more. Due to these factors, it is highly significant that couples in addition to discussing their estate planning viewpoint with each other, but also utilize the services of a knowledgeable and experienced estate planning attorney when devising wills, trusts, or other legal documentation related to the estate planning process.

Children And Inheritances

In second marriage scenarios, one or both spouses are going to possibly bring new children into the family. In the children are still underage or adults, deciding on inheritance can be challenging. Because both spouses are likely to bring separate assets to the second marriage, like property, financial institution accounts, retirement accounts, life insurance policies, etc., it is important to make details very clear as the way these assets are going to be divided up following one or both spouses have passed away. In most cases, each spouse is going to want to be sure specific assets go expressly to their children, while also guaranteeing the surviving spouse is going to have enough income to live on for years to come.

Pre And Post-Nuptial Agreements

For a lot of couples involved in a second marriage, a pre- or post-nuptial agreement is a vital part of the relationship. Usually put in place when one spouse has considerably more assets than the other, these agreements are seen as a perfect way to protect various assets if the marriage ends in divorce. Nevertheless, because these documents can contain many stipulations and involve large amounts of money and other invaluable assets, it is vital that the documents be assessed by a knowledgeable estate planning attorney prior to them being signed. Should either spouse fail to understand any part of their documents, they need to have it explained to them by their attorney in a clear, comprehensible manner prior to signing.

Naming Beneficiaries

Deemed as one of the most general estate planning matters in a second marriage, naming beneficiaries for life insurance policies, individual retirement accounts, and other income plans can be challenging to come to a decision on. While typically easily done with a first marriage, the second marriage circumstance can bring with it the potential of children or others being overlooked in the process. For instance, a new spouse is going to have the capability to name anyone they want to be a new beneficiary. Even when stipulations are made progressing, after one spouse has passed away, those stipulations can be broken, leading to substantial conflict and possibly legal issues.

Using Trust as Beneficiary

To prevent developing disagreements when a spouse passes away, it is typically a good idea for naming a trust as beneficiary for life insurance policies and other tax-delayed income plans. By taking this action, a spouse can retain control over how and to whom assets and income are distributed. For instance, a trust can be established for providing  a spouse with lifetime income, at the same time allow other assets to be distributed in another way. By way of a trust, safeguarding can be granted from not only careless spending, but additionally from lenders, divorce, and estate taxes.

Long-Term Care Insurance

Whereas it is not enjoyable to consider, long-term care needs to be a part of the estate planning process in second marriages, particularly if there is a significant age gap among spouses. Should long-term care in a nursing community or other facility be required for a spouse, the couple’s shared assets are going to be in play to pay for that care, which can lead to financial challenges or possibly bankruptcy. To safeguard against this, long-term care insurance can be bought as a form of asset safeguarding.

By working with a knowledgeable estate planning attorney and going over your goals with each other, nearly all potential estate planning issues can be resolved to everyone’s benefit.

Estate Planning

Discussions about child custody issues are always difficult during a divorce. While there is no way to make them easy or comfortable, you can find ways to work together. The collaborative divorce process helps with tools and professionals to make child custody and other decisions a little more manageable. By working together as a team, you’re able to make the decisions that are best for the kids.

Collaborative divorce can make these challenging times more manageable. It requires you to work with your spouse at a time when you have decided you need to go your separate ways. When it comes to child custody, though, you want to do all you can to make the right parenting decisions. Collaborative divorce can help create pathways for you to cooperate. If you live in the Phoenix/Scottsdale area and want to learn more about collaborative divorce, contact Ogborne Law today.