Remarriage is a particularly joyful milestone, especially later in life. However, blending families and merging assets is often more complex for well-established adults.
Naturally, you and your significant other want to prioritize securing the future of your heirs and beneficiaries. Therefore, it is vital to think carefully about your estate planning before remarrying.
Proactively discussing assets and estate plans
When preparing for remarriage, have open conversations with your mate about your assets and how you want to handle them. These discussions should include what will happen to the family home, savings, retirement accounts, and other valuable items you own.
Importantly, consider creating a prenuptial agreement that outlines each person’s expectations. This step can go a long way toward preventing conflicts later on.
Don’t leave such a conversation to chance. Set a specific time to have a relaxed but open discussion about protecting your loved ones and property. Many people find it helpful to have a financial or legal professional help guide the discussion in a positive direction and avoid common mistakes.
Addressing specific estate planning issues
Remarriage often brings unique challenges while planning for your estate. For instance, you should decide who will inherit the family home if either of you has kids from a previous marriage. Without a clear plan, a spouse might inherit the house, which could leave children without the place they grew up in. Use an estate plan to specify who gets the house, whether it’s your spouse, your children, or someone else.
Also, clearly define expectations around assets. For example, if you’ve been saving for your children’s education or other needs, protect those funds so they won’t merge into your new marriage’s finances. This step prevents misunderstandings and ensures your children receive what you intended for them.
If you set up a trust in the past, revisit it when you remarry. Trusts can be tricky, so update beneficiaries or adjust the terms to reflect your new family situation. Make sure certain assets go to your children or limit your new spouse’s access to your estate if that’s what you prefer.
Well-thought-out estate plans protect a family from confusion and discord during distressing times, such as death, incapacitation, or divorce. Careful preparation and honest discussions can benefit both your new marriage and your children’s future.