SECOND FAMILY? SPECIAL ESTATE PLANNING NEEDS
Many people today get remarried after a divorce or the loss of a spouse to death. A second, third or subsequent marriage may offer someone the companionship and stability they have long sought. While a new relationship may be a happy, positive thing, it may come with some unique challenges when the two parties try to figure out how to bring their children and other extended family members into the mix. Estate planning for spouses in a blended family may be particularly different than for partners in a first marriage.
RBC Wealth Management explains that the unique challenges associated with creating an estate plan for a remarried couple stem from the increased complexity not just of a person’s financial situation at the time of their remarriage but also the breadth of emotions that come into play. Many remarriages occur when the children of each partner are older and have already left home. These adult children may feel highly anxious about losing out on their portion of a parental inheritance.
People with children from a prior marriage may benefit from creating a good prenuptial agreement along with their other estate planning documents. A prenup may also benefit spouses who own businesses and want to ensure their companies are protected regardless of what happens with their new marriage.
According to Forbes, a basic will is generally not sufficient to cover all of the estate planning needs a remarried person may have. Special forms of trusts help individuals provide for both their new spouses and their children without pitting the two parties against each other.