One of the biggest areas of dispute in estate planning is with second marriages. Here is a question I received. I've changed the facts around so that I am not giving specific legal advice.
Phil,
My dad, age 87, is getting married soon so that his new wife will be eligible for social security benefits on his earnings. In his living trust he had made arrangements for me, my sister, and his lady friend. What changes for us, his kids, when he marries this lady? What do we need to know?
Wow, what a predicament.
My first reaction is to ask if his father was entering into a marital agreement (a pre-nuptial agreement, or pre-nup) before the marriage. What a pre-nuptial agreement will allow is for his father to maintain control over the use and disposition of his estate.
Without a pre-nuptial agreement, the laws of their state concerning marital property will control.
What this means is that if his father dies after he re-marries and fails to modify his estate plan, his new wife may receive statutory claims or benefits from the father's estate (each state is different, so it is critical to receive local advice).
Another area of concern is what happens if the father re-marries and then the wife becomes incompetent? By getting married, the father has opened up his net worth to the medical claims and needs of his new wife.
When I was in active practice and was consulted by a widowed client who wanted to re-marry, I reviewed the rules concerning long term health (nursing home rules and costs) with him. I showed him what he would be responsible for if they were to re-marry. I'd say 8 out of 10 people I saw and went over this with decided not to re-marry after learning the rules. They decided to "live in sin."
Another area of dispute I often saw was when the re-marrying parent wanted to change his or her estate plan to provide for the new spouse. This caused a lot of hard feelings. The children often felt that they were entitled to the estate of the first parent to die and that it should not be held for the new spouse.
By providing for the new spouse, the re-marrying parent is putting his children in a position where they are waiting for their "step-parent" to die before receiving what they felt is rightfully theirs.
So, think twice before re-marrying in your later years. Consult with competent legal counsel and consider, at a minimum using a pre-nuptial agreement. Consider the impact the new marriage will have on your revocable living trust and whether any changes are needed to your estate plan for Medicaid or estate tax reasons.
Phil Craig is a licensed attorney and entreprenuer. He started practicing law at age 25 in 1979. He does not take on any more clients, but is advisor to some of the biggest names in the internet world. He shares his knowledge gained over the last 25 years at his Living Trust Secrets newsletter site: click here=========>http://www.livingtrustsecrets.com
** Attn Ezine editors / Site owners ** Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include our resource box as listed above.
If you do use the material please send us a note so we can take a look. Thanks.
green cleaning service Des Plaines ..Hopefully, you've read my prerequisite lesson "Invitation Anatomy 101 ?... Read More
"Is it better for a woman to marry a man... Read More
The big day is not all about the bride; the... Read More
Marriage counseling is an investment of money, time, and energy... Read More
An anniversary gift is the opportunity to show your loved... Read More
When it comes to response/RSVP cards, the goal is to... Read More
When your marriage is in trouble and you're fighting to... Read More
Everybody talks about wedding invitations, but what about all the... Read More
Many happy couples are turning their backs on the traditional... Read More
The more realistic you are as you prepare for marriage,... Read More
When you're married, the boundaries between yourself and your spouse... Read More
Getting Married? Congratulations! You just set the date for the... Read More
"Til death do us part" is still the language used... Read More
Many spouses carry heavy suitcases filled with a collection of... Read More
Effective communication between you and your wedding guests is essential... Read More
In the dim past of the last century, good time... Read More
Buying engagement rings online doesn't have to be confusing or... Read More
When I was the owner of a major wedding facility,... Read More
India is a diverse, multi-cultural country with people of various... Read More
So you're planning your wedding and a thousand decisions must... Read More
Being chosen as a maid of honor is a great... Read More
When it comes to wedding music, there are some choices... Read More
You have made the decision to contact a marriage counselor.... Read More
Brides have always worn white, right? Not so. In ancient... Read More
There is a huge array of diamond wedding rings available... Read More
bathroom cleaning service Mundelein ..If you are actually planning your Las Vegas wedding reception,... Read More
Providing chocolate as a wedding favor has been a time... Read More
I've been noticing a few things lately that a few... Read More
When I was the owner of a major wedding facility,... Read More
Wedding favors have evolved over time. Wedding favors today combine... Read More
Marriage is a wonderful thing, but planning the wedding is... Read More
While signing a prenuptial agreement can be one of the... Read More
As most of you know the evening festivities for a... Read More
Only in Las Vegas can you find everything for your... Read More
If you've always dreamed of flying in a helicopter, Las... Read More
Let's think about what goes into your wedding budget. Your... Read More
You're well into planning your wedding and have finally decided... Read More
Great deals can be found when you know how much... Read More
The Cancun honeymoon vacation comes with its bagage of sweet... Read More
Give disc jockey's credit. Many of them have endured so... Read More
Wedding flowers make up a large part of the wedding... Read More
Today's tech savvy couples are plugging in and creating unique... Read More
If you're looking to the internet for help with your... Read More
How do you react if your spouse announces "I want... Read More
Embarking upon a marriage is a wonderful time in life... Read More
Need a quick idea to dress up a mediocre wedding?... Read More
Between paying for the wedding and setting up a new... Read More
Nobody, I repeat nobody likes a bridezilla bride. If you... Read More
In a traditional Jewish wedding ceremony, Jewish wedding rings play... Read More
When two people - destined for each other, come together,... Read More
Marriage & Wedding |