There are many different approaches that can be taken when you are planning your estate, and this is why you should discuss your options with an estate planning attorney. In many cases, situations that appear to be challenging to a layperson can be effectively addressed.
With this in mind, we will provide six tips for parents who are getting remarried in this post.
A simple will is not the answer.
If you are getting remarried, you will invariably be optimistic about the future. You may feel as though it will be an affirmation of trust if you leave everything to your new spouse in a simple will. The assumption would be that your spouse will do right by your children if you die first.
The sentiment is understandable, but the majority of second and third marriages do not withstand the test of time. You should certainly recognize your responsibility to your spouse, but you have responsibilities to your children as well, so this would be a very risky decision.
Consider a qualified terminable interest property (QTIP) trust.
There is an estate planning tool called a qualified terminable interest property trust that can be the ideal solution.
To implement this strategy, you fund the trust, and you designate a trustee to act as the administrator. It can be someone that you know personally, or you can use a fiduciary entity like a trust company or the trust department of a bank.
When you use a qualified professional trustee, you can be certain that the assets will be managed effectively, and that there will be no real or perceived conflicts of interest. Longevity will not be a source of concern, and there will be inherent organizational oversight.
Your spouse would be the initial beneficiary of the trust, and your children would be the successor beneficiaries. If you do predecease your spouse, the trustee will distribute the trust’s earnings to your surviving spouse for the rest of their life.
When you are drawing up the trust agreement, you could give the trustee the latitude to distribute portions of the principal on a discretionary basis if you choose to do so. The first beneficiary would also be able to use property that is technically owned by the trust.
They would have sufficient support, but they would not be able to change the terms of the trust or alter the successor beneficiary designation. After their death, your children would become the beneficiaries, and they would receive distributions in accordance with your wishes.
Accept the fact that your spouse may remarry.
When you are asking yourself how your spouse would plan their own estate after you pass away, you may focus on decisions that will be made by a widow or widower. In fact, your spouse could get remarried, and everything could change.
This should certainly be part of the calculus when you are making your inheritance planning decisions.
Consider giving your children immediate inheritances.
If you have a qualified terminable interest property trust, in the long run, you would be taking care of everyone appropriately. This being stated, your children would be in a somewhat awkward position if they receive nothing until your spouse is gone.
To alleviate this potentially uncomfortable vibe, you may want to arrange for your children to receive a portion of their inheritances shortly after your passing.
Record your health care choices.
Would you want to be kept alive indefinitely through the utilization of life support if there is no hope of recovery? This is a personal question that people should answer for themselves, and you can record your choice in a living will.
You should also name a representative in a durable power of attorney for health care. The agent that you choose would be empowered to make medical decisions on your behalf. These would be matters that are not covered in the living will.
Due to a provision contained within the Health Insurance Portability and Accountability Act (HIPAA), doctors are not allowed to share medical information with anyone other than the patient. With this in mind, you should include a HIPAA release to give your health care agent the ability to speak freely with your physicians.
When you have these incapacity planning documents in place, you can take control in advance. There will be no reason for your spouse and your children to have disagreements about the appropriate course of action.
Schedule a consultation with an estate planning lawyer.
As you can see, there are estate planning solutions to address any situation, and we can help you implement the ideal approach. You can schedule a consultation at our Glastonbury or Westport, Connecticut estate planning offices by calling us at 860-548-1000.
We also have a contact form on this website that you can fill out if you would rather send us a message.
Mr. Karpe is licensed to practice law before the courts of the States of Connecticut and Colorado, the U.S. District Court for Connecticut, the U.S.District Court for Colorado, the United States Supreme Court, and the U.S. Tax Court. He is a member of the Connecticut and Hartford County Bar Associations as well as the Estate and Probate Section of the Connecticut Bar Association. In addition, he is a member of the American Academy of Estate Planning Attorneys, the National Academy of Elder Law Attorneys and Planned Lifetime Assistance Network of Connecticut.