As estate planning attorney, we emphasize the fact that this is an ongoing process. The first estate plan that you put in place will be based on a snapshot of your life at that time. Over the years, things will change, and estate plan updates will become necessary.
One of the most common events that will trigger theneed for an estate plan revision is a change in marital status. Most peoplethat get divorced remarry at some point in time, and many of them havechildren. This can create some pretty complicated planning challenges, butsolutions exist.
Communication Is Key
If you are getting remarried as a parent withchildren, you and your spouse have some planning decisions to make. Couplesthat are in this position should discuss the estate planning implications sothey can find common ground from the start.
There are a wide range of different possibleapproaches that can be taken. Some people will benefit from a premaritalagreement as a starting point, and others will feel as though this is notnecessary.
The age of each person that is entering the marriagewill be part of the equation, along with their respective financial positions.In some cases, one future partner will have children, and the other one will bechildless. Of course, there are also many blended families.
Once you work with your fiancé to reach a generalagreement with regard to the way you want to proceed, you can schedule aconsultation to speak with us.
We can gain understanding of your situation and thegoals that you want to accomplish. After we see the picture clearly, we willmake recommendations. If you decide to move forward, we will help you establisha custom crafted plan that perfectly suits for your expanded family.
Qualified Terminable Interest Property Trust
There is a particular estate planning tool that can beideal for many people that are facing this situation in the form of a qualifiedterminable interest property trust (QTIP). This type of trust makes sense whena person with significant resources is marrying someone that is quite a bityounger.
To implement this approach, you fund the trust(transfer your assets into it) and you name a trustee to act as theadministrator. Your spouse would be the initial beneficiary, and the childrenfrom a previous marriage would be the successor beneficiaries.
If you pass away first, the trustee would be able todistribute the earnings from income-producing assets to your spouse. You wouldhave the ability to allow for distributions of portions of the principal ifthis is your choice.
Your surviving spouse would also be allowed to useproperty that has been conveyed into the trust. They would be well provided forthe rest of their life, but the initial beneficiary would not be able to changethe terms of the QTIP trust.
After the passing of your surviving spouse, yourchildren would become the beneficiaries of the trust. This is just one of thestrategies that can be used, and as we have stated, there are otherpossibilities.
Need Help Now?
We have counseled countless clients that are gettingremarried over the years, so we thoroughly understand your concerns. When youchoose our firm, you will find that we genuinely care about your well-being.Our goal is to help you protect everyone that you love in the ideal manner.
After you put an initial plan in place, will always be ready to make adjustments if and when they become necessary. If you are ready to connect, we can be reached by phone at 212-973-0100 . We also have a contact form on this website you can use to send us a message.