How estate planning is affected by a second marriage

Many Nevada residents take the appropriate steps during their first marriages to provide for their loved ones after death. If they divorce, further estate planning may be required in order to account for the changes that families undergo when that happens. When the chance to remarry arises, the estate plan will once again need to be reviewed and modified as appropriate.

It is not enough to just discuss finances. Many Nevada residents who are marrying for the second time already have assets of their own that they intend to be passed on to existing children or other family members. Therefore, the appropriate arrangements need to be made to ensure that happens.

What many people might not realize is that a prenuptial agreement also serves as an estate-planning tool. Separate assets can be identified — and valued if necessary. Furthermore, each party can specifically waive any right to those assets upon the death of the other spouse. This makes it easier to ensure that each party’s separate property will be distributed as desired.

This might be sufficient in some cases, but in others, additional measures might be needed. Establishing trusts is one way to meet estate-planning goals. The family’s unique dynamics will be taken into consideration in order to determine what kind of trust will best provide for the new spouse and other family members such as adult children from a prior relationship.

Remarrying might present some financial challenges, but estate planning does not have to be one of them. Couples would benefit from obtaining the advice and assistance of an attorney to help draft documents that fulfill the wishes of each party. Once done, the couple and their separate family members can have the peace of mind that a plan is in place.

Source: wmur.com, “Money Matters: Financial and estate planning for second marriages“, Marc Hebert, Aug. 18, 2016