Second Marriages. Estate Planning Concerns

One of the biggest areas of dispute in estate planning is with second marriages. Here is a question I received. I've changed the facts around so that I am not giving specific legal advice.

Phil,

My dad, age 87, is getting married soon so that his new wife will be eligible for social security benefits on his earnings. In his living trust he had made arrangements for me, my sister, and his lady friend. What changes for us, his kids, when he marries this lady? What do we need to know?

Wow, what a predicament.

My first reaction is to ask if his father was entering into a marital agreement (a pre-nuptial agreement, or pre-nup) before the marriage. What a pre-nuptial agreement will allow is for his father to maintain control over the use and disposition of his estate.

Without a pre-nuptial agreement, the laws of their state concerning marital property will control.

What this means is that if his father dies after he re-marries and fails to modify his estate plan, his new wife may receive statutory claims or benefits from the father's estate (each state is different, so it is critical to receive local advice).

Another area of concern is what happens if the father re-marries and then the wife becomes incompetent? By getting married, the father has opened up his net worth to the medical claims and needs of his new wife.

When I was in active practice and was consulted by a widowed client who wanted to re-marry, I reviewed the rules concerning long term health (nursing home rules and costs) with him. I showed him what he would be responsible for if they were to re-marry. I'd say 8 out of 10 people I saw and went over this with decided not to re-marry after learning the rules. They decided to "live in sin."

Another area of dispute I often saw was when the re-marrying parent wanted to change his or her estate plan to provide for the new spouse. This caused a lot of hard feelings. The children often felt that they were entitled to the estate of the first parent to die and that it should not be held for the new spouse.

By providing for the new spouse, the re-marrying parent is putting his children in a position where they are waiting for their "step-parent" to die before receiving what they felt is rightfully theirs.

So, think twice before re-marrying in your later years. Consult with competent legal counsel and consider, at a minimum using a pre-nuptial agreement. Consider the impact the new marriage will have on your revocable living trust and whether any changes are needed to your estate plan for Medicaid or estate tax reasons.

Phil Craig is a licensed attorney and entreprenuer. He started practicing law at age 25 in 1979. He does not take on any more clients, but is advisor to some of the biggest names in the internet world. He shares his knowledge gained over the last 25 years at his Living Trust Secrets newsletter site: click here=========>http://www.LivingTrustSecrets.com

** Attn Ezine editors / Site owners ** Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include our resource box as listed above.

If you do use the material please send us a note so we can take a look. Thanks.

---

Wedding Dresses - Frequently Asked Questions

You've gotten engaged and have set the wedding date and... Read More

Terrific Advice Concerning Destination Weddings As Shared By Two Gurus On The Topic

Today Norm Goldman, Editor of Sketchandtravel.com & Bookpleasures.com is pleased... Read More

Like Sand Through an Hour Glass

Symbols! Weddings are full of them. Exchanging rings. Exchanging roses.... Read More

Throwing a Las Vegas Garden Wedding

You may not think of Las Vegas as an area... Read More

Bridal Accessories To Complete Your Wedding Look

Bridal accessories are as necessary to complete the bridal look,... Read More

Wedding Rings

Your wedding rings were meant to last a lifetime. They... Read More

Theres More to Wedding Invitations Than You Might Think

Everybody talks about wedding invitations, but what about all the... Read More

Marriage Proposals ? Why Doing It Right Will Make All the Difference

Proposing marriage to your beloved is a very big step.... Read More

How To Tell An Extraordinary Wedding Disc Jockey From Someone Who Could Ruin Your Reception

You have your band (around your finger), now it's time... Read More

Requesting the Presence of Your Presents

For better or worse, in people's minds weddings and wedding... Read More

Marriage: Where is the Fairy Tale?

"Presently, 40% of all first marriages in this country end... Read More

Searching For An Affordable Mother Of The Bride Dress

It is absolutely possible to find a beautiful and affordable... Read More

Wedding Reception; From Trendy to Traditional

Wedding receptions are not as formal as they once were,... Read More

Las Vegas Hotel Weddings

"Las Vegas hotel weddings give you tons of options. You... Read More

Creative Wedding Cards

You invitation is a reflection on the type of wedding... Read More

Subtle Danger Signals on the Domestic Front

If you've been around long enough, you're aware of the... Read More

Mens Wedding Bands ? A Whole World Of Choice

Mens wedding bands are an emerging phenomenon. Whilst women have... Read More

Current Trends in Wedding Photography

Wedding photography is an evolving field that requires artistic talent,... Read More

Loose Moissanite Stones, A Great Way to Buy Your Moissanite Jewelry

Moissanite is fast becoming the new diamonds. The newest jewelry... Read More

How To Choose Your Wedding Cake

One of my favorite parts about the wedding, is the... Read More

Marriage Advice: Upgrade Your Marriage By Changing Your Focus

As the story goes, a Cherokee elder was sitting with... Read More

Send Flowers and Liberate Your Bridal Party From the Shackles Of Monogram Hell

With so many ways to ask your closest friends and... Read More

Shopping For Elegant Mother Of The Bride Dresses

There are many places to shop for elegant mother of... Read More

Maui Honeymoon Resorts

Each of the dozens of Maui honeymoon resorts can be... Read More

Do We Still Need Wedding Traditions?

Traditionally at weddings the speechs are made after the wedding... Read More

What Is A Destination Wedding Favor?

Have you heard of destination wedding favors? I haven't either,... Read More

What Being Best Man is All About

Being a best man is like many duties you will... Read More

Top Wedding Fitness Questions (and their answers)

As a Personal Trainer for brides-to-be, I often get asked... Read More

The Bridezilla Syndrome: Do You Have It? Ten Ways to Avoid All the BS!

In a fast-paced world of wedding planning, stress levels are... Read More

Reception to do List for an Outdoor Reception

You have to start with a thorough to do list... Read More

How to Find the Right Bridesmaid Dresses for Your Wedding

The kind of bridesmaid dresses your bridal attendants should should... Read More

Dance Music for the Wedding Reception

The most enjoyable part of the wedding reception is the... Read More

Writing Wedding Vows ? Ideas That Will Help You Express What You Truly Feel

More and more, couples are choosing to write their own... Read More