Special Estate Planning Issues for the Twice Married

Couples in their second marriage have unique issues to consider when devising their estate plan. The first situation to consider is how money will be divided if both spouses die at the same time. One option is for each parent to pass property to his or her biological children. Another option is for all the assets to be divided among all of the children equally. Yet another is to divide assets based upon merit or need, but this can quickly become an emotional mess.

The more common—and complicated—situation occurs when one spouse dies first. If everything is left to the surviving spouse, she may spend those assets before spending her own, leaving nothing for his children. If everything is left to each spouse’s biological children, the surviving spouse may not be able to maintain her standard of living during retirement.

A possible solution for these problems is to place assets in a trust, limiting the surviving spouse’s access to the assets. Another possibility is for the surviving spouse to inherit half of the decedent’s property while the rest goes to his biological children.

“There is no one-size-fits-all solution to estate planning for couples in second marriages. Each situation is different and requires a different solution.”

Fred Amrein, Voices: Fred Amrein, On Estate Planning for the Twice Married, W.S.J., Feb. 2, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.