When you get divorced it is important that you disinherit your former spouse. Though many people recognize the fact that they need to change their wills after getting divorced, this only impacts the assets that must pass through probate. There are others that pass outside of probate, so you really should sit down with your estate planning attorney and go through everything with a fine tooth comb any time your marital status changes. One you remarry there are more things to consider, and below are four estate planning vehicles that are very useful for blended families.
Entering into such an agreement will spell out the personal property that each party is bringing into the marriage, creating a bedrock of delineation to support the overall blended family estate plan.
You can set up a discretionary trust that is intended to provide for your child, appointing a trustee to oversee the trust and the distribution of funds according the terms you include in the trust agreement. Should your child predecease your ex she won’t become the beneficiary (unless that’s what you wanted for some reason). You can set up the trust for the long-term elucidating who would become the beneficiary in the event of your child’s passing, perhaps his or her children (your grandchildren) or the child’s siblings.
Qualified Terminable Interest Property Trust
With this type of trust you make your current spouse the beneficiary for the rest of his or her life, but once he or she passes away the remainder would be passed along to your children, possibly via the funding of a discretionary trust.
A rather simple and straightforward way to address the potential conflicts that could arise in a blended family situation is to purchase life insurance policies and name your beneficiaries as you see fit.
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