Divorce rates have been going down over the last few decades, but there are still plenty of marriages that do not withstand the test of time. Many of these folks get remarried, and Psychology Today has stated that the majority of second and third marriages do not succeed.
This is the reality, and even though you may think you will not be one of the statistics, you can rest assured that all of the divorced people felt the same way.
Protecting Your Legacy
There are different approaches that can be taken when someone is getting remarried, and the circumstances will dictate the appropriate course of action. A premarital agreement is always a possibility, and this can and allow the marriage to begin on a foundation of honesty.
This can be a partial solution for preserving your legacy for the benefit of your children, and there is a specific estate planning device that can also be part of the plan. It is particularly useful if you have significant resources, and you are likely to predecease your new spouse.
Qualified Terminable Interest Property Trust
A qualified terminable interest property trust (QTIP) can be used to provide for the people that you love in the optimal manner. To implement this strategy, you fund the trust, and you designate a trustee to serve as the administrator.
You can potentially use a trust company or the trust department of a bank, and this can be the right choice in many instances. There is a cost involved, but this will be a well-funded trust that is going to remain active for years.
When you use a professional, there will be no conflicts of interest or favoritism, and the assets will be managed by a qualified financial specialist.
Your spouse would be the initial beneficiary of the trust, and your children would be the ultimate beneficiaries. If you die before your spouse does, the trustee would distribute the trust’s earnings to your surviving spouse for the rest of their life.
They could use property that is owned by the trust, so if you convey your home into the trust, they could continue to live in it as usual. However, they would not have the power to sell it, and they would not be able to change any of the other terms of the trust.
The trustee could be given the ability to distribute portions of the principal under different circumstances at their discretion if you want to include this provision.
Your spouse would be in a good situation, and the lion’s share of your legacy would be protected. After your spouse’s death, your children would inherit the assets that remain in the qualified terminable interest property trust.
Limited Direct Inheritances
If you implement this strategy, you should consider the awkward dynamic that may exist between your children and your spouse. After all, they will not receive anything until the first beneficiary passes, and that is the proverbial elephant in the room.
You can circumvent this potential scenario if you arrange for your children to receive some of their inheritances shortly after you pass away.
Attend a Complimentary Seminar!
We enjoy getting out into the community to share important estate planning information with our neighbors. Our seminars are very well received, they are held at convenient locations throughout our service area, and they are a complimentary offering.
You can see the dates if you visit our seminar schedule page, and we ask that you register for the session you would like to attend so we can reserve your seat.
Need Help Now?
If you are on this site because you are looking for a Glastonbury, CT estate planning lawyer that can help you to put a plan in place, you are making the ideal connection. As this post demonstrates, each situation is different, so your estate plan should be custom crafted to suit your needs.
Personalized attention is key, and this is what you will receive when you choose our firm. You can set the wheels in motion right now if you call us at 860-548-1000, and you can use our contact form to send us a message
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
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