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Avoid these common estate-planning errors when remarrying

On Behalf of | Oct 6, 2020 | Uncategorized

When you entered into your first Indiana marriage, you may have given your husband or wife a prominent role in any estate plans you had. You may have decided to make your then-spouse the beneficiary of your assets, retirement accounts and life insurance policies. You may have also given your ex certain decision-making responsibilities when it comes to your personal health care or finances.

If that marriage ends and you decide to marry someone else, you may want to give your estate plan a fresh look. Otherwise, you risk having your ex maintain power or in areas where you might prefer your new spouse having the final say. Failing to update your estate plan when you remarry may also have a negative impact on your children or new spouse. So, when revisiting it, avoid making the following common mistakes.

Failing to look out for children you already have

Think twice before leaving your assets to your new spouse if you have children from a prior marriage, even if you have an understanding that he or she is going to distribute what remains of your legacy among your children. This is not definite. So, you may want to consider making other plans to help ensure your children receive what you intend, such as creating a revocable trust or a separate marital trust.

Failing to guard against depletion of assets

If you go the marital trust route, consider how certain variables could lead to the depletion of assets. If you died and then your new spouse required expensive medical care, for example, it could wipe out remains in the trust. For this reason, you may want to consider making your new spouse the beneficiary of a new life insurance policy to protect both him or her and your children.