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.

---

Marriage Counseling: What Do Wives Really Want in a Husband? Part Two

In Part One, we looked at what wives really want... Read More

Conquer the Five Most Common Fears About Your Wedding Ceremony

It's safe to say that of all the important events... Read More

Me Tarzan! You Jane!

Once upon a time a caveman, while out for a... Read More

A Wedding Shower Checklist

Bridal showers are one of many pre-wedding parties and are... Read More

Wedding Favors, a Special Thank You for Your Guests

Wedding favors are as unique and varied as the couples... Read More

Minor But Important Duties For Your Wedding Party, Bridesmaids, and Groomsmen

Your wedding party is a major factor in the success... Read More

Anniversary Gift Ideas: Sweet and Sexy Speaks Volumes

There are many great options to consider for letting your... Read More

How To Choose Your Wedding Cake

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

Your Wedding Flowers - What Are Your Choices?

Your wedding flowers usually tie to your wedding theme. When... Read More

Bridal Hair Stylist Goes Above and Beyond the Call of Duty

You are locked in your seat on the most famous... Read More

Ending Co-Dependence

Why does Co-dependence arise? Well because two or more individuals... Read More

Grooming for the Groom

The big day is not all about the bride; the... Read More

Exciting Costa Rica Honeymoon Vacations

Couples experiencing their first Costa Rica honeymoon vacations are never... Read More

Tips for Choosing the Right Wedding

The job of choosing the right wedding cake style is... Read More

Las Vegas Casino Weddings

If you are at all familiar with Las Vegas, you... Read More

Whats a Goldfish Doing at a Wedding?

Time was when you'd open a wedding invitation you'd find... Read More

How Wives with Cheating Husbands Can Gain the Upper Hand

Too many wives with cheating husbands put up with their... Read More

Second Marriages. Estate Planning Concerns

One of the biggest areas of dispute in estate planning... Read More

Marriage Counseling: How to Keep Jealousy From Destroying Your Marriage

Jealousy has often been called the "green-eyed monster," and with... Read More

Balance - Wedding Budget Blues

Let's think about what goes into your wedding budget. Your... Read More

How to Have a Sizzler of a Honeymoon! Article No.1

Henry Vlll and Elizabeth Taylor, who between them had fourteen... Read More

Why Hire A Wedding Designer?

As couples begin thinking about their wedding, they are often... Read More

The Greatest Love Story Ever Told

When people think about great love stories, more often than... Read More

Hawaii Honeymoon Vacations - Romanticizing Your Honeymoon!

Hawaii honeymoon vacations could take you to a miracle trip... Read More

Is Your Marriage Sinking?

Reading this article does not necessarily mean that if you... Read More

Florida Beach Weddings

There is nothing more romantic than a wedding by water... Read More

Understanding Sexuality in Marriage

Your physiological and psychological expressions of sexual behavior during the... Read More

Wedding Save the Date Cards?Best Ideas and Wording

The sole purpose of save-the-date cards is to give the... Read More

How A Marriage Counseling Secret Can Save Your Marriage

How do you react if your spouse announces "I want... Read More

How to Lower a Wedding Cake Price

I recall how Mrs. Ingridman taught me invaluable lessons on... Read More

How to Enhance and Enrich Your Marriage

Any marriage counselor will tell you that one of the... Read More

Wedding Dresses - How to Select the Best One for You

Every bride would agree that her wedding dress should be... Read More

Celebrate With Butterflies ? The Flying Flowers

Make your upcoming event the most memorable ever by adding... Read More