After a divorce or the death of a spouse, a second marriage can be an exciting fresh start, but it’s also an important signal that it’s time to revisit your estate plan. Second marriages can cause a few complications in the planning process, especially if one or both spouses have children from previous relationships. To protect yourselves and provide for your new blended family, it’s crucial to update your plan and ensure all the proper provisions are in place. From reviewing your beneficiary designations to providing for additional heirs, here are some of the main things to focus on after the wedding bells ring.
Review Your Beneficiaries
One of the first things you’ll likely update in your plan is listing your new spouse as your primary beneficiary. This is a crucial step to ensure your partner will inherit those assets if something happens to you. However, you must also change beneficiaries listed elsewhere, like retirement or investment accounts. If you still have your ex listed on one of these accounts and die before changing the beneficiary designation, they will automatically inherit the funds instead of your new partner. It’s fairly simple to make these changes, and these changes will protect your family.
Think of the Kids
If there are children in the mix from previous relationships, it’s crucial to work together to determine what’s in their best interests for the future. There could be disagreements over how you and your new spouse want assets divided among them or how to manage the estate on their behalf if one spouse passes away. You will likely need to update your estate plan and perhaps even establish separate trusts so your spouse and children receive the inheritances you wish. Consider their ages and needs as you determine how assets will be distributed and divided amongst them.
Consider a Prenup
Prenuptial agreements can be helpful in a second marriage, especially if one partner has significant assets or has large debts. A prenup can set forth what happens to your property in the event of divorce, but it also can waive certain statutory protections afforded to a surviving spouse if you and your new spouse deem it appropriate.
