Getting married for a second or subsequent time may have an impact on an estate plan. For instance, if a deceased person’s spouse were to get remarried, the deceased person’s assets could become commingled. This might result in assets going to parties other than the ones that they were intended for. Creating a trust may make it possible to specify where assets go regardless of a person’s relationship status.
It is important to review an estate plan to avoid accidentally disinheriting children from a previous marriage. This might occur if a person and a new spouse own property jointly. It is also possible that beneficiaries will have to wait until both spouses die before getting their inheritance. Both of these issues could be resolved by creating a trust that specifies how and when assets are to be transferred after the estate holder dies.
Keeping money in a separate account may be a good idea for those who have financial ties to an old spouse. Since creditors don’t have to abide by a divorce agreement, an individual might be required to pay an old debt alone. Keeping money in a separate account may also keep it from becoming commingled and put at risk in a second or subsequent marriage.
There can be many benefits to reviewing an estate plan prior to getting married again. Creating a trust may protect assets and allow beneficiaries to avoid probate. This is because the assets will be held outside of the estate. Reviewing an estate plan might also confirm that the proper beneficiary designations are in place and that a trust says what an individual means it to say. These reviews can be done with the help of an attorney or another trusted party.