When you are getting remarried as a parent, you and your new spouse will have some estate planning decisions to make. There are steps that you can take to make sure that everyone in the family is provided for in accordance with your respective wishes. This is an area of specialization for our firm.
Separate Property
You and your spouse must make some decisions with regard to the property that you are bringing into the marriage. After you decide how you would like to proceed, we can recommend the appropriate estate planning approach. Some people will choose to enter into premarital agreements, and this can be part of the process.
QTIP Trust
In some cases, individuals with children that are getting remarried have concerns about protecting the inheritances that they would like to leave to their children. Under these circumstances, a qualified terminable interest property trust can provide a solution.
If you establish this type of trust, your spouse would be the first beneficiary, and your children would be the successor beneficiaries. Assuming you predecease your spouse, they would receive distributions of the trust’s earnings for the rest of their life.
However, they would have no access to the principal. The trust will be managed by a trustee that you choose when you establish the vehicle. After their passing, your children would inherit the assets that remain in the trust.
Powers of Attorney
A properly constructed estate plan will include durable powers of attorney. With a durable power of attorney for property, you name someone to manage your finances in the event of your incapacity.
You should also include a durable power of attorney for health care to empower an agent to make medical decisions on your behalf if it becomes necessary. When you have an existing estate plan with these documents, you will probably want to change the respective representatives.
Beneficiary Designations
Remarriage will typically trigger the need for beneficiary designation updates. Insurance policies would fit into this category, and individual retirement accounts and/or pensions can be considerations.
Let’s Get Started!
Estate planning for people with children that are getting remarried is easier than you think when you engage legal counsel. There are solutions that can be implemented to address any and all concerns, so you can take the right steps and go forward with total peace of mind.
If you are ready to work with a New Braunfels, TX estate planning lawyer to put a plan in place, give us a call at (830) 554-4055 to schedule a consultation appointment. There is also a contact form in this site you can fill out if you would like to send us a message.