Getting married for the second or even third time presents many challenges for estate planning, finances and family dynamics. A thoughtful strategy can build a harmonious family and protect legacies, according to a recent article from The Street, “Love and Legacy: Balancing the Two in a Second Marriage.”
Finances can be a flash point for subsequent marriages, especially if spouses have different levels of assets. Mature couples typically come to a second marriage with children, houses, retirement accounts, alimony and credit card debt. How will assets be distributed, what will inheritances look like and how will the couple plan for the future? These are just a few questions to address when marrying again.
Other issues to consider:
Home ownership. Should the new spouse be added to the deed if one spouse owns a home and the other spouse moves in? This has implications for estate planning. If both spouses are on the deed, what is the plan upon the death of the first spouse? If the home automatically passes to the surviving spouse, the children of the deceased spouse may be excluded from their share of the home ownership.
Beneficiary designations. Marrying again with healthy retirement accounts requires looking ahead. If the new spouse is named a beneficiary, are the deceased’s children disinherited? What if a spouse wishes to leave money to their biological children only. However, the surviving spouse won’t have enough money to live on?
Inheritance rights. Balancing the inheritance of biological children while ensuring that the spouses have protected each other takes advance planning. Without it, a surviving spouse could be left homeless or dependent upon adult children for support. An estate planning attorney may recommend a marital trust to provide for the surviving spouse, while ensuring an inheritance for the children.
Social Security benefits. For those who counted on the higher benefit level of their first spouses, remarrying may impact SSI, surviving spouses, or divorced surviving spouse benefits. This is something to explore before marriage, since it can’t be undone.
These issues may feel overwhelming. However, tackling them before marriage can prevent friction between the couple and stepchildren. Among the many plans for a wedding, an appointment with an estate planning attorney should be made to create a personalized estate plan to address your unique situation, including children from prior marriages.
Your meeting should also include a complete review of all wills, trusts, beneficiary designations and retirement plans. Ensure that your documents reflect your new marriage and distribute assets according to your wishes.
Blended families are complicated and require personalized estate, tax, and financial planning. The increasing numbers of people choosing to love again and blend their families show how much people value being part of a family. Protecting your family with a well-thought-out estate plan can start a new marriage on the right foot.
To learn more about estate planning in the East Valley, Gilbert, Mesa and Queen Creek, schedule your free consultation with Attorney Jake Carlson by using one of the links above.
Reference: The Street (Dec. 19, 2024) “Love and Legacy: Balancing the Two in a Second Marriage”
