Where estate planning is involved, it can be more complicated when a blended family is involved. In many cases, family dynamics can become permanently strained.
With the number of remarriages growing, many families now include children, stepchildren, former spouses and in-laws.
Such families need advance wealth planning with specific goals, says a story in Forbes.
The biggest issue is where your money goes when you die.
Most remarried couples want to make sure the surviving spouse is cared for if one passes away. They want the children from their previous marriages to be the ultimate beneficiaries. The challenge is to design a plan that keeps everyone happy.
One important tip to keep in mind is to make sure your beneficiary assignments are up to date on retirement plans and insurance policies. You probably don’t want your former spouse getting the money.
Another good idea is to set up a trust to spell out the distribution of assets. Make sure to take care in naming the trustee. If you name your wife, she may not be as generous to your children from your prior marriage as you would have been.
A prenuptial agreement is also a good idea, the story says. And make sure the terms jibe with what is in your will.
Remarried spouses should also discuss living wills and powers of attorney. If the new spouse is designated the health care agent, the children should know.
If you have questions about estate planning, feel free to call us for a consultation at (626) 396-3145.
