Issue 11.10
If you are remarried, there are six basic considerations in planning your estate which should be addressed. Consider the following:
1. Children of previous marriages will occasionally throw up roadblocks if they feel that an outsider threatens “their” inheritance. If you intend to leave any of your estate to your new spouse, you should consider telling your children what your plan is. Doing so will give you a chance to reason with the children, and for them to voice any concern they may have. It will also make the transition when you are deceased much easier. If your children know what to expect, they will be less likely to challenge your estate plan upon your death. Good communication is critical.
2. Prenuptial agreements or postnuptial agreements are highly recommended if you want to preserve your assets for your children. They will also protect each of you from your respective step-children. Some clients avoid mentioning the subject of a prenuptial or postnuptial agreement because they don’t want to appear selfish or distrustful. Most make it clear that gifting between the spouses may occur, in order to make it clear that when property is given to a spouse, it is intended to be that spouse’s property. It’s also generally a better approach to establish what property is “mine, yours or ours” for the benefit of each other, and to give a clear outline to your children of your intentions concerning your property.
3. Insurance policies, pension and retirement plan beneficiary designations need to be reviewed. Is the beneficiary or ownership correct? If you are naming children as beneficiaries of a retirement plan, your new spouse needs to consent to that designation under federal law. An annual review of your all beneficiary designations should be a part of your estate plan.
4. You will need someone to handle both medical and financial issues if you are disabled. You should decide now who will act as your agent to make those decisions for you. Consider whether a child or your new spouse would be best to make those critical decisions.
5. If you have retirement income, check with your pension representative about the rights to survivor income if you should pass away before your new spouse. The same thing can be said about social security benefits.
6. If you have custody of minor children from a prior marriage, you should consider who should act as the guardian of those children when you can’t care for them.
Sean Sullivan is an attorney and shareholder in the firm of Brindley Sullivan, PC, in St. George, Utah, and may be reached at (435) 673-9220.