In a real sense, estate planning is about protection. The first order of business is to make sure that you have the resources that you will need during your elder years. At the same time, you also want to do what you can to protect your loved ones through the power of your legacy.
We have to emphasize the fact that the first estate plan that you create will be based on your life at that time. Over the years, your life situation may change, and this can trigger the need for estate plan updates.
One situation that is quite common is divorce, and most people that get divorced ultimately remarry. Many of these folks have children, and this can present some estate planning challenges.
Custom Crafted Solutions
The new family dynamic that will emerge can take many different forms. There is an ideal solution from an estate planning perspective, regardless of the situation.
People that are getting remarried should have some meaningful conversations about the estate planning implications for everyone involved. This is definitely not something that you want to avoid until you are actually married, because surprises can damage relationships.
Once you know what you want to accomplish, you can come into our office for a consultation.
We can gain an understanding of your goals and provide the appropriate recommendations. If you decide to move forward, we can create a custom crafted plan that is ideal for you and your blended family.
Legally Binding Protection
There is one particular legal device that can be very useful in certain remarriage situations.In some cases, a person that has adult children will get married at a mature age. They have considerable resources, and they are marrying someone that is quite a bit younger.
From an estate planning perspective, how do they take care of everyone that they love appropriately? This scenario can be addressed through the utilization of a qualified terminable interest property (QTIP) trust.
The spouse would be the first beneficiary, and the trust creator’s children would be the final beneficiaries of the trust.
If the grantor of the trust dies first, the trustee would be able to distribute the earnings that are generated by the principal of the trust to the surviving spouse. The survivor could also utilize property that is owned by the trust throughout their life.
The surviving spouse would be totally secure, but they would not have the ability to change the terms of the trust–this would include the beneficiary designations.
After the death of the surviving spouse, the children would become the beneficiaries of the trust.
Action Is Required
Studies that are conducted consistently find that most American adults do not have estate plans in place. This is even true for people that are the parents of dependent children.
On the one hand, this is somewhat understandable because of longevity expectations. However, people pass away at all ages every day, and it can sometimes happen quite suddenly.
As soon as people are depending on you, an estate plan becomes an absolute must, and your plan should be updated when your life changes.
Let’s Get Started!
We sincerely care about the safety and security of our neighbors, and we go the extra mile to exceed the expectations of our clients. If you establish a relationship with our firm, we will be perfectly positioned to help you revise the plan whenever it becomes necessary.