Second Spouse Planning
How do you ensure that both your new spouse and your children from your first marriage receive an inheritance if you die before your newly married spouse does? Who gets the house — your new spouse or your children? How will your new spouse get by financially if you choose to provide an immediate inheritance for your children?
You want to make sure that your children won't be disinherited if you leave everything to your new spouse, who then wills the money elsewhere. Your simple reciprocal will may be fraught with risks that could cause your children to be disinherited.
Here are some solutions:
Pass your assets to a revocable trust agreement that is funded during your life through your will or through beneficiary designations, or through a combination. The trust is revocable at any time, so you can change your mind. On your death, the trust becomes irrevocable and would benefit your spouse and children.
Through proper planning, you can maintain control over your assets to prevent disinheritance of your children, while still providing for your spouse.
If you don't make specific arrangements, here is a broad look at what may happen to your assets, although this may vary with state law and other situations:
These financial issues merit consideration — competing interests of your adult children and your second spouse may induce headaches. Suppose cognitive impairment makes your spouse, widow or widower prey to con artists and an assortment of financial liabilities. And as noted, state law can make a big difference in how your estate is handled. In the case of blended families, it's always wise to get professional help even as you tie the knot.
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