Saying “I do” again? Consider these 3 estate planning tips first.
Finding love a second time around is a wonderful thing. Those who find themselves in this happy situation can take steps to help better ensure that their happily ever after truly lasts “ever after”.
Revisit your estate plan to ensure your “ever after” is protected
Protect your ever after with these three estate planning tips:
- Beneficiary designations. It is important to update your beneficiary designations. A will does not generally impact how these assets are distributed. Even if an ex is disinherited on a will, that individual could still receive assets that are distributed through these designations. Take a moment to review these designations and update as needed. This can include life insurance policies and IRAs.
- Plan for children. The primary concern of parents often involves children. If you have children from your previous marriage it is wise to structure your estate plan to protect them no matter what happens between you and your new love. Children’s inheritance can be protected through the use of trusts and with specific bequests of personal property that has either a high level of financial or emotional value.
- Commingle wisely. Carefully consider whether you mix your assets together or keep them separate. One example involves real estate. If you are living in a home that is in one of your names, consider the pros and cons of putting both names on the mortgage and deed. This step will give both individuals ownership rights over the property. In some situations, it is a wise move. In others, it could result in future issues.
These are just a few of the many steps that can be taken to help ensure that your second marriage is one that benefits your future marriage while still protecting assets for children from a previous marriage.