As estate planning attorneys, 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 the need for an estate plan revision is a change in marital status. Most people that get divorced remarry at some point in time, and many of them have children. This can create some pretty complicated planning challenges, but solutions exist.
Communication Is Key
If you are getting remarried as a parent with children, you and your spouse have some planning decisions to make. Couples that are in this position should discuss the estate planning implications so they can find common ground from the start.
There are a wide range of different possible approaches that can be taken. Some people will benefit from a premarital agreement as a starting point, and others will feel as though this is not necessary.
The age of each person that is entering the marriage will 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 be childless. Of course, there are also many blended families.
Once you work with your fiancé to reach a general agreement with regard to the way you want to proceed, you can schedule a consultation to speak with us.
We can gain understanding of your situation and the goals that you want to accomplish. After we see the picture clearly, we will make recommendations. If you decide to move forward, we will help you establish a custom crafted plan that perfectly suits for your expanded family.
Qualified Terminable Interest Property Trust
There is a particular estate planning tool that can be ideal for many people that are facing this situation in the form of a qualified terminable interest property trust (QTIP). This type of trust makes sense when a person with significant resources is marrying someone that is quite a bit younger.
To implement this approach, you fund the trust (transfer your assets into it) and you name a trustee to act as the administrator. Your spouse would be the initial beneficiary, and the children from a previous marriage would be the successor beneficiaries.
If you pass away first, the trustee would be able to distribute the earnings from income-producing assets to your spouse. You would have the ability to allow for distributions of portions of the principal if this is your choice.
Your surviving spouse would also be allowed to use property that has been conveyed into the trust. They would be well provided for the rest of their life, but the initial beneficiary would not be able to change the terms of the QTIP trust.
After the passing of your surviving spouse, your children would become the beneficiaries of the trust. This is just one of the strategies that can be used, and as we have stated, there are other possibilities.
Need Help Now?
We have counseled countless clients that are getting remarried over the years, so we thoroughly understand your concerns. When you choose 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.