If getting wed for a second time, you need to take great care with your estate planning. Failing to do so could result in you leaving assets to the wrong people when you die.
Update your estate plan anytime there is a significant life event
When you end your first marriage, you should update your estate plan. If you do not, your ex-spouse may inherit part of your future estate.
Discuss your estate plans with your children and your spouse-to-be
Being upfront about your wishes with people is the best way to avoid their fighting over your estate when you pass away. By having the discussions when you are alive, you can explain why you are making particular choices. Letting each party know that you are discussing it with the others reduces the chance someone can try and say you would have wanted them to have a certain asset.
Here are some of the parts of your estate plan to revise when remarrying:
- 401(k) plans: These automatically go to the person to whom you are married at the time of your death. If you prefer this to go to your children, you need your spouse to sign a legal agreement.
- Life insurance and retirement policies: These require you to designate a beneficiary. Once, it was probably your first spouse. Ensure you replace them.
- Your home: You may buy a new home with your new spouse. Consider to whom you want to leave your share when you die.
Updating your estate plan allows the people you choose to receive your assets with the minimum of fuss. The more complex your estate and marriage history, the more challenging this becomes. Seek an attorney’s help to ensure you get it right. Outdated estate plans could result in your children or new spouse losing out.