Estate-Planning Options to Consider Before Remarrying [Checklist]
Estate planning can be a difficult matter to address for many couples. When you add the complexities of a blended family, estate planning for second marriages can become very complicated and stressful. Even when a couple does not have children from a prior relationship, remarrying later in life usually means that both parties have accumulated assets and property in their names.
Combining finances can be tricky, especially if either person went through a difficult divorce that included litigation regarding property division. The need and desire to protect what they consider “their” property might cause disagreements.
Engaging in estate planning before remarrying can resolve many issues the couples might face. Through open and transparent discussions, each person can develop an estate plan that meets his or her goals and desires while considering the other person’s feelings and needs too.
Estate Planning Considerations for Parties Who are Remarrying
Before you remarry, there are several issues you and your spouse need to consider. Some important estate planning issues to discuss before entering a second or subsequent marriage include:
Children from Previous Marriages and Relationships
If you have children from a previous marriage or relationship, it is important to provide for their care while providing for your spouse in the event of your death. Often, a trust is one of the best ways to provide for minor children from a prior marriage.
Separate and Marital Property
Discuss how you want to handle property you own before the marriage and property you acquire during the marriage. You may want to preserve some family heirlooms and property for your children or blood relatives while leaving marital property to your new spouse or dividing it equally between children and step-children.
Pre-Marital Agreements
Pre-marital agreements can be very useful in estate planning. A prenuptial agreement can resolve many of the financial issues that a couple might face if they divorced. It can also resolve some of the estate questions that arise in second marriages.
Long-Term Care Costs
As we age, the chance we might need long-term care increases. It is important to discuss long-term care planning with your partner before remarrying. Who will pay these costs? Do you have an asset protection plan in place that protects your new spouse and your children?
Healthcare Decisions and Incapacitation Planning
These issues usually arise when adult children are involved. Adult children often feel as if they have the right to make healthcare decisions for their parents, even though their parents may have remarried. Incapacitation planning should be a part of every estate plan. Discuss these issues before the wedding and execute the necessary documents to ensure your wishes are carried out if you cannot speak for yourself.
Estate Planning Checklist Before Remarrying
Before you and your partner say, “I do,” it is wise to review your estate plan. Below is a checklist to help ensure you considered all estate planning issues before your wedding.
☐ Last Will and Testament
☐ Trust Agreements
☐ Pre-Nuptial Agreement
☐ Beneficiary Designations
☐ Financial Power of Attorney
☐ Healthcare Power of Attorney
☐ HIPAA Authorizations
☐ Living Will
☐ Long-Term Care Plans
☐ Retirement Plans
☐ Pensions and Social Security
☐ Life Insurance Policies
☐ Business Succession Plan
☐ Discuss Income and Debts
☐ Discuss Investment Strategies and Combining Accounts/Assets
☐ Discuss Retirement Plans and Goals
☐ Discuss How to Divide Property Accumulated During Marriage Upon Death
Working with a Professional to Address Past Relationship Issues
There could be additional estate planning issues to address depending on your unique situation. Consulting with an estate planning lawyer or financial planner before remarrying is an excellent way to ensure that you protect yourself, your new spouse, and family members from a prior relationship.