While estate planning is often hard enough before marriage or even during a first marriage, being in a second marriage can make it much more difficult. Whether it’s a blended family, having different goals on inheritances, or caring for aging parents, estate planning during a second marriage is hard. However, it is important couples in second marriages discuss their estate plans and use a knowledgeable attorney to draft their wills, trusts, and/or other legal documents.
Inventory Your Assets
With a second marriage, it is important that each party understands the assets and liabilities of the other individual. Even if there is a pre-nuptial agreement in place, both parties need to understand the entire financial picture of the relationship. When creating this inventory, be sure to include retirement plans and life insurance policies. It should not just be a run down of your property and bank accounts – there’s more to your financial picture than that!
Blended Families
Second marriages also frequently result in a blended family, where one spouse (or both!) bring children into the family. Irrespective of whether the children are minors or adults, it is imperative that the couple considers how they wish their assets to be distributed upon their passing. Property, bank accounts, retirement accounts, and life insurance policies are some of the most popular assets that need to be properly devised in a second marriage estate plan.
Whether you want your assets to go to your children, your spouse, or others, there may be legal restrictions on what you can and cannot bequeath – and to whom you may bequeath certain items. That is part of the reason why it is so important to meet with an estate planning attorney to discuss your options.
Beneficiary Designations
In the case of certain accounts, like life insurance policies and retirement accounts, you may be able to update beneficiary designations as part of your estate plan. However, you will want to consider the impact changing those designations will have on your overall estate plan and financial picture.
Frequent Reviews
Once you have drafted your estate plan, it is not done forever! As circumstances change and life moves on, your estate plan and/or designations may change, too. It is important to review your estate plan at least every two to three years to ensure it is still up to date.
Questions?
The above list is not exhaustive, but it highlights some of things to consider in your estate plan if you are in your second marriage. If you are in Florida and are interested in discussing whether a will is right for you, contact us today. If you’re ready to get started on your Florida estate plan, you can do so here.