Divorce, Remarriage, and Your Estate Plan

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Divorce, Remarriage,
and Your Estate Plan
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Attorneys always emphasize the fact that estate
planning is an ongoing process
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When things in your life change these new
beginnings may render your existing estate plan
obsolete
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Divorce and remarriage are two of the life
events that are going to necessitate estate plan
revisions
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Inheritance Beneficiary Changes
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After a divorce you have to consider
disinheriting your former spouse
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This can include changing the beneficiary
designations on your payable on death accounts
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Any estate planning documents that you have in
place directing asset transfers should be reviewed
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You may also want to change the beneficiaries on
your life insurance policies
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Getting Remarried?
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If the love bug strikes and you decide to get
married again you should ask yourself how this
will affect your existing estate plan
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Without question, some significant revisions
will be in order
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This is particularly true if you have children
from your previous marriage or marriages
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Not-So-Romantic Facts
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Obviously people who are getting married are
generally going to be very much in love
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However, if you want to be practical you should
consider some very relevant statistics
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Well in excess of 60 of second marriages fail
according to statistics cited in a 2012
Psychology Today article
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Over 70 of third marriages end in divorce
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Popping Another Question
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After you pop the question with regard to tying
the knot, you may also want to consider popping
another question
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If you ask your spouse-to-be to enter into a
premarital agreement it can be constructed to
protect both parties
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The agreement can also protect the interests of
children from previous marriages
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Premarital Agreements
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Premarital agreements are nothing more or less
than contracts, and they can accomplish various
different objectives
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One of these would be the delineation of the
personal assets of each individual entering the
marriage
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The agreement could also stipulate the terms of
property distribution in the event of a future
divorce
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QTIP Trusts
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How do you provide for your surviving spouse and
your children?
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One option would be the creation of a qualified
terminable interest property (QTIP) trust
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Your surviving spouse would receive income from
the earnings of the trust for life
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Upon the passing of your surviving spouse your
children would inherit the funds remaining in the
trust
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The First Step
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Though we have not covered every detail in this
presentation, these are some things to THINK ABOUT
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You may be a bit overwhelmed when you consider
all of the ramifications
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The intelligent first step would be to discuss
your situation with a licensed estate planning
attorney
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Your lawyer will gain an understanding of your
family dynamic and make the appropriate
recommendations
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• If you live in the greater Indianapolis area our
  firm can help you revise your estate plan
• after you go through a divorce

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Contact Frank Kraft to schedule a free
consultation [phone] www.FrankKraft.com