A second marriage is a time for a new beginning. Even so, many individuals who remarry are likely to bring children from a prior marriage to the relationship, as well as financial obligations. These factors can complicate estate planning and what happens to your assets and property after your death. This is a time to enjoy your new marriage, but also a time to be responsible when it comes to estate planning.
The first mistake to avoid is failing to update wills, living wills and other documents, including the beneficiaries listed on insurance policies and other accounts. If and when you should need someone to make medical decisions for you and you want it to be your spouse, this change should be made.
Another mistake some couple make is avoiding subjects related to money and spending habits. Each person in the relationship needs to be upfront and honest about their debts, as well as their assets. Talk about your financial priorities and goals. Maybe one of you desires to retire in a few years while the other has plans to continue working for many more. Discuss it.
Don't have unclear communication about financial support to ex-spouses and children. Along with debt and financial obligations, it's important to lay out how much money you owe a previous spouse through alimony or financial obligations such as child support. If not, it is easy for your new spouse to begin to feel resentful.
Mistakes happen when you neglect to seek the advice of an experienced attorney in estate planning. Second marriages have the potential for complicated situations, especially when it comes to finances and estate planning. For example, when a parent marries a second time, children from the first marriage might be worried about how this will impact their inheritance. If your new spouse outlives you, a trust allows for providing income for him or her. Proper estate planning can ensure that the assets you want your children from a previous marriage to have do indeed go to them.
Finances and death are two topics that are easy to avoid. In the end, you will be happy you and your new spouse addressed these matters and can focus on celebrating your new life together.
Posted on Estate Planning