There are different family dynamics to consider when you are thinking about the subject of estate planning. Statistics on the subject vary, but it is safe to say that around 40% to 50% of marriages end in divorce these days.
Most people who go through a divorce eventually get married again, and the majority of these individuals already have children when they enter into their second or third marriages.
This can create an estate planning situation that must be dealt with proactively. How do you make sure that your new spouse is provided for while protecting the interests of your children? One solution would be to enter into a prenuptial agreement and create a qualified terminable interest property trust.
Once you have asserted ownership of your personal property with the prenuptial agreement, you could create a QTIP trust for the benefit of your children. The QTIP allows your spouse to benefit from the resources that you place into the trust while he or she is alive.
However, your spouse does not have the power to decide who inherits the trust assets after his or her death. You name the beneficiaries when you are creating the trust, and you would presumably name your children as the beneficiaries if you are creating the trust for their protection.
Estate planning for blended families requires a certain brand of expertise. To devise a plan that provides for all of your loved ones, take action right now to arrange for a consultation with an experienced San Jose Bay Area estate planning attorney.
- 2024 Federal Estate and Gift Tax Update (VIDEO) - November 16, 2023
- National Long-Term Care Awareness Month (VIDEO) - November 13, 2023
- Proposition 19 and Repeal the Death Tax Act (VIDEO) - November 3, 2023
