It is very common for people to remarry after a divorce or the death of a spouse. While remarriage can provide a lifetime of happiness, it also raises a host of special estate planning issues that must be considered and understood. We find that having both spouses involved with this type of planning, and even sharing their intentions with children or other family members can go a long way in fostering positive relationships. The same holds true for unmarried couples who are in a committed relationship, but perhaps have children from prior relationships.
If you are blending a family, the issues you should consider include the following:
- Who should make your health care decisions or manage your financial affairs in the event you are unable to do so for yourself because of illness or mental incapacity? Your current spouse or partner? Your children or other family members?
- How will you provide for your spouse or partner upon your death for the remainder of his or her life? How will your spouse or partner provide for you upon his or her death?
- At second to die, where should the remaining assets go? Do you want to assure that your children or other family members will eventually inherit your separate assets after your spouse’s death?
- Do you wish to make immediate distribution of any of your separate assets to your children or family members upon your death, before a distribution is made to your spouse or partner? Are there family assets that you want to keep in your family?
- Is there a disparity in wealth between you and your spouse or partner? Are there estate or income tax issues to address as part of your planning?
- Have you named death beneficiaries on your life insurance and retirement accounts, and do you have your accounts and property titled, in a manner that will achieve your intended results upon your death? Payable on death beneficiary designations and joint ownership will supersede the provisions included in your Will or Revocable Living Trust.
- Did you execute a pre-nuptial, or post-nuptial, agreement? If so, then the terms of that agreement must be considered and reflected in your estate planning documents?
All of these issues can, and should, be considered by both of you and discussed with each other and your families as soon as possible. By doing so, you can better ensure that your wishes will be carried out and there will be fewer unintended results and surprises when a disability or death occurs. Let Waltz, Palmer & Dawson, LLC assist you if you are in a second (or a third or fourth) marriage or relationship, we can help you think through and plan for all of the above issues, as well as address any other questions or concerns that you have – call us at (847) 253-8800.
Waltz, Palmer & Dawson, LLC is a full-service law firm with various areas of service to assist your business, including: Employment Law, Intellectual Property, Commercial Real Estate, Business Immigration, Litigation and general Business Law services. Individual services include Estate Planning, Wills and Trusts, Probate, Guardianship, Divorce and Family Law.
This article constitutes attorney advertising. The material is for informational purposes only and does not constitute legal advice.