If you have remarried after a divorce and hope to transfer some of your assets to kids from a previous marriage, don’t ignore the importance of planning for when you pass away.
A lot of individuals lack even a simple will and the stakes can be higher if you don’t plan your estate when you tie the knot again. As a result, your children could unintentionally be disinherited. I bet you wouldn’t want such which is why we have provided you with tips on how to avoid this fatal mistake. However, before we jump into that
Ensure that you have a Last Will and Testament
Though circumstances differ, there are significant issues to consider when ensuring that your children end up with the assets you intended for them from the start. One way to protect your children’s inheritance is to offer it to them directly via a Last Will and Testament.
A will can state your intended beneficiaries, the intended assets, and how those assets will be shred upon your death. Selecting beneficiaries and keeping choices updated is important. Aside from specifying how you want your assets to be shred to your children, a will can also determine designations to charities and non-immediate family members.
Update your beneficiary designations
Assets that are not controlled by a will are 401(k), life insurance policies, including IRAs. To ensure that your children are the beneficiaries of these listed assets, it is advised that you speak with an experienced estate planning attorney who can guide you through the process.
For a 401(k), if you are the account holder, you must have your new spouse sign a waiver to select another individual to be designated as a beneficiary. On the other hand, for IRAs, you, as the account holder, have authority to name whomever you wish as the beneficiary without the approval of your spouse. If you would like to modify the beneficiary designation on your life insurance policy, it is a more simple process.
Should I create a trust?
Another good way to protect your children’s inheritance is to set up a rust. By reserving resources and assets, the beneficiaries will receive their inheritance later in the future. For instance, when your children get to a particular age or when they meet certain requirement. There are many types of trusts you can create for your children like special needs trust and minor’s trust.
The resources placed in the trust are secured, and you have the last say in how the assets distribution will be carried out. To further secure your property and assets when tying the knot for the second time, you may decide to create a prenuptial agreement. This document indicated what assets are deemed shared property and reveals what assets may be shared to your spouse upon your passing.
Overall, an estate plan including a will, trust, and beneficiary designations is important to make sure that your assets will be transferred according to your wish. If you are tying the knot again or have already, it is essential to contact a professional estate planning attorney to either help you create and estate plan or update your existing plan to avoid mistakenly disinheriting your children from their assets.
Need an estate planning attorney?
Planning an estate can be a complicated process. It involves a lot of paperwork and legal documents like power of attorney, trust, will, etc. Thus, if you want to plan your estate the right way, it is important that you contact a professional.
An estate planning attorney can help you in several ways. This professional can help you plan your estate and help you create the necessary estate planning documents. If you need to update your estate plan, this professional can be of help as well. Also, if you have concerns or questions, contacting an estate planning attorney is the best way to find answers.
We boast of competent estate planning attorneys who can help you navigate the tough estate planning process. Simple get in touch with our office so we can offer you or your loved ones our professional services.