Date post: | 08-May-2015 |
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DIVORCE, REMARRIAGE,
AND YOUR ESTATE PLAN
Attorneys always emphasize the fact that
estate planning is an ongoing process
When things in your life change these new beginnings
may render your existing estate plan OBSOLETE
DIVORCE AND REMARRIAGE are two of the life events that are
going to necessitate estate plan revisions
Inheritance & Beneficiary Changes
After a divorce you have to consider disinheriting your
former spouse
This can include changing the beneficiary
designations on your payable on death accounts
Any estate planning documents that you have in place directing
asset transfers should be reviewed
You may also want to change the beneficiaries on your life insurance
policies
Getting Remarried?
If the love bug strikes and you decide to get married
again you should ask yourself how this will affect your existing estate plan
Without question, some significant
revisions will be in order
This is particularly true if you have children from your previous marriage
or marriages
Not-So-Romantic Facts
Obviously people who are getting married are generally
going to be very much in love
However, if you want to be practical you should consider some very relevant statistics
Well in excess of 60% of second marriages
fail according to statistics cited in a
2012 Psychology Today article
Over 70% of third
marriages end in divorce
Popping Another Question
After you pop the question with regard to tying the knot, you may
also want to consider popping another question
If you ask your spouse-to-be to enter into a premarital
agreement it can be constructed to protect both
parties
The agreement can also protect the interests of children from
previous marriages
Premarital Agreements
Premarital agreements are nothing more or less than contracts, and they can
accomplish various different
objectives
One of these would be the delineation of the personal
assets of each individual entering the marriage
The agreement could also stipulate the terms of property distribution in the event of a
future divorce
QTIP Trusts
How do you provide for your surviving spouse and your
children?
One option would be the creation of a qualified terminable interest property
(QTIP) trust
Your surviving spouse would receive income from the
earnings of the trust for life
Upon the passing of your surviving spouse your children would inherit the
funds remaining in the trust
The First Step
Though we have not covered every detail in this
presentation, these are some things to THINK
ABOUT
You may be a bit overwhelmed when you consider
all of the ramifications
The intelligent first step would be to discuss your situation with a
licensed estate planning attorney
Your lawyer will gain an understanding of your family dynamic and make the
appropriate recommendations
If you live in the greater Indianapolis area our firm can
help you revise your estate plan after you go through a divorce
Contact Frank & Kraft to schedule a
FREE CONSULTATION(317) 684-1100
www.FrankKraft.com