Many Georgia residents take time to create estate plans while married. However, many people may not realize the importance of making sure the estate plan is up to date, especially with a life change such as a second marriage.
Remarriage is a great reason to evaluate an estate plan to match the change in circumstances.
Potential estate complications
Forbes states that blended families can bring challenges and complications to the estate plan. When one spouse dies before the other, these complicated family ties can pose a problem for who stays in the house, how assets divide and when children inherit the estate.
Many couples choose to create a trust to account for these types of issues. This legal entity provides detailed information about how to carry out the wishes of the deceased over what the last will and testament allows. A trust can also ensure children of one marriage retain their inheritance even if one spouse remarries upon the death of the other.
Estate planning tips
AARP recommends updating beneficiary forms when someone remarries as often the previous spouse receives the pension, retirement account or life insurance without that change. Instead, a person may want to leave part of these assets to their current spouse, while their children inherit the remaining balances.
Any property owned before the marriage may pose complications. For example, an older person may want to allow their spouse to remain in the home after they pass. The spouse may not actually inherit the property, but simply have the ability to stay in the home until their own passing. The property then passes onto the original owner’s inheritors, such as children from a first marriage.