Are you consider remarrying in San Diego? Do you and/or your spouse have children from a previous marriage? If so, remarriage and a blended family is an excellent reason for a new trust. Blended families are becoming the “norm” here in San Diego and across the country. What do you need to know about remarriage from an estate planning point of view? Do you own your own business? What is “succession planning” and how do you protect the interests of your company? What can the Brady Bunch teach us about estate planning?
You remember the concept: A woman with three daughters and a man with three sons deciding to marry and form a blended family. The question from an estate planning point of view is how you should plan to ensure provision for children from a previous marriage. What do you intend to leave to your children if you unexpectedly pass away? How will you ensure that part of your own “separate property” as well as the assets you will develop with your new spouse are properly set aside to provide for your existing children and heirs? Your spouse-to-be should be considering the same issues.
The nightmare inheritance scenario of remarriage and a blended family goes something like this: After one spouse passes, the surviving spouse decides they care a lot more about their own children or the children of your marriage and moves your assets, commingled assets or joint community property into position for their own use. In this scenario there is nothing left for the children from your first marriage, and assets such as collections, family heirlooms and even investment and retirement accounts are used for other purposes, instead of providing for the heirs and beneficiaries you intended.
A trust is an excellent option to consider when you are considering remarriage and a blended family in San Diego. You may set aside specific items, assets and funds for your existing child(ren) while providing for the needs of your new spouse and any children that may come from your new marriage. The trust would set aside those specific assets you designate including your separate property and a percentage of your community property upon your passing. These assets could be placed in an irrevocable trust to ensure that they are passed on to the beneficiaries and heirs you wish. The balance of your assets and community property would remain in a revocable trust that ensures assets pass quickly and efficiently while minimizing complications and taxes.
While we are sure all you and your new spouse have the best of intentions, it actually strengthens a new marriage when you are able to discuss important issues such as providing for your children and planning in the event of an unexpected passing. We invite you to contact Allen Barron for a free consultation at 866-631-3470 and learn how to plan for the best interests of your existing children and beneficiaries and the new family you will become a part of.