Estate Planning for Second Marriages

According to the American Psychological Association, approximately 50 percent of first marriages end in divorce, and the divorce rate for second marriages is even higher. While your second marriage may stand the test of time, you should consider some important estate planning issues before you exchange vows.

Estate planning for second marriages can be particularly complex, particularly if you have children from your previous marriage and you want to ensure that their inheritance is secured. It is highly recommended that you have an open, honest discussion with your new spouse about a range of estate planning issues from prenuptial agreements to updating your will, trust, and other estate planning documents. If you are getting re-married and have questions or concerns about estate planning for second marriages, it is highly recommended that you contact a highly skilled and experienced estate lawyer at your earliest convenience.

How Does Estate Planning Differ in Second Marriages?

There are a number of issues that make the estate planning process different, and a bit more challenging for second marriages. For example, one or both spouses may bring substantial assets and debts to the marriage. In addition, if you and your new spouse were both previously married, you may both have children whose inheritance you want to protect. Unlike your first marriage, you may be concerned about protecting your children’s inheritance while providing for your new spouse. In addition, if you name one of your children as trustee of your trust rather than your spouse, this can create conflict.

What Are Some Estate Planning Tips for Second Marriages?

Estate planning allows you to make important decisions about how you would like your assets and property distributed, ensure that your children are protected, and make decisions about your healthcare should you become incapacitated. While there are some unique conflicts that may arise when making estate planning decisions with your new spouse, particularly if you have children, you can avoid some of these conflicts by keeping the following estate planning tips in mind:

• Update Your Beneficiaries: One of the most common estate planning mistakes people make after getting remarried is not changing or updating the beneficiaries in your will. Several financial accounts require designating a beneficiary, including life insurance policies, pensions, 401(k), IRA, and other retirement accounts, as well as existing wills and trusts. The primary beneficiary receives all of the funds in the account. If there are multiple primary beneficiaries, the funds will be divided equally. A contingent beneficiary receives funds if the primary beneficiaries die. You can designate your children as the primary beneficiaries or your second spouse as the contingent beneficiary, or vice versa. If you do not update these documents, your first spouse may be the primary beneficiary in charge of important healthcare decisions.
• Consider a Prenuptial Agreement: Discussing a prenuptial or postnuptial agreement with your soon-to-be second spouse may seem uncomfortable. However, considering the divorce rate of second marriages, a prenuptial agreement will protect your assets in the event that your second marriage ends in divorce.
• Set Up or Update Your Wills and Trusts: A will determines how your assets will be distributed after you die, so it is important that you have a will in place or update the will to name your new spouse as a beneficiary. If you do not have a will in place when you die, the intestate rules apply, which means that the court will determine how your assets and property will be distributed, which may not reflect your wishes. A trust is a legal contract that allows you – the grantor – to name a trustee to manage your assets on behalf of your beneficiaries while you are still alive. A marital trust transfers all assets to your surviving spouse, which can leave your children with no inheritance. A family trust allows you to distribute your assets among your surviving spouse, children, and other beneficiaries. You can also specify percentage amounts and include age requirements that your children must meet in order to receive their inheritance. If you name your new spouse as a trustee, this can create conflict if they do not have a positive relationship with your children.
• Hire an Experienced Estate Lawyer: The estate planning process can be quite complex, particularly if this is your second marriage and you want to ensure that your assets and property are distributed according to your wishes. An experienced estate lawyer will thoroughly explain the estate planning process, address issues unique to second marriages, and ensure that your estate plan reflects your current goals.

What Are the Typical Estate Planning Documents Needed for a Second Marriage?

Whether you are starting the estate planning process or you need to make certain changes to your plan after getting remarried, the following are examples of important estate planning documents you will need:

• Will: If you do not have a will, the state will determine how your assets will be distributed.
• Revocable Trust: This is particularly useful if you are getting married for the second time and want to ensure that your children from your first marriage are involved in overseeing your assets. You can retain the right to manage and spend your assets while allowing your children to administer the trust independently.
• Irrevocable Trust: This allows you to keep assets that you owned before getting married separate from your new spouse’s assets.
• Financial Power of Attorney: This is someone who will make financial decisions on your behalf if you cannot do so. It could be your new spouse and child or two people who work as co-agents.
• Medical Power of Attorney and Living Will: This is someone who will make medical decisions for you if you become incapacitated. This person should be someone you trust and can work well with other family members.

Somerville Estate Lawyers at Lyons & Associates Help Clients With Estate Planning for Second Marriages

If you are getting married for the second time and you have questions about the impact a second marriage will have on estate planning, contact the Somerville estate lawyers at Lyons & Associates, P.C. To schedule a free, confidential consultation, call 908-575-9777 or contact us online. Located in Somerville, Morristown, and Freehold, New Jersey, we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.

• Category: Estate Planning