Donald C. Reutemann CFP®, RPA

(518) 688-2223

Estate Read Time: 3 min

Yours, Mine, and Ours: Estate Strategies for Second Marriage

If you are one of the many Americans who are in a second marriage, you may need to revisit your estate strategy.1

Unlike a typical first marriage, second marriages often require special consideration in order to address children from a prior marriage and the disposition of assets accumulated prior to the second marriage.

Second Marriages

Here are some ideas you may want to think about when updating your estate strategy:

  • You may want to ensure that your children from your first marriage are set up to receive assets from your estate, even as you provide your second spouse with adequate resources to live should you die first.
  • Consider titling of assets. Assets that are jointly owned in your name and your second spouse’s name are set up to pass to your second spouse, often regardless of any instructions in your will.
  • If you are designating your second spouse as beneficiary on retirement accounts, remember that once you die, the surviving spouse can name any beneficiary of their choice, despite any promises to name your children from a previous marriage as successor beneficiaries.
  • Consider any prenuptial and postnuptial agreements with a professional who has legal expertise in the area of estate management.
  • If your new spouse is closer in age to your children than to you, your children may worry that they may never receive an inheritance. Consider passing them assets upon your death. This may be accomplished through the purchase of life insurance.2
  • Consider approaches to help protect against the drain that extended care may have on assets designed to support your spouse or pass to your children.

1. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
2. Several factors will affect the cost and availability of life insurance, including age, health and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Building a Resilient Workplace

Building a Resilient Workplace

The pandemic has challenged us to find our inner strength and navigate unpredictable times. Business owners can support employees by fostering their well-being.

Succeeding at Business Succession

Succeeding at Business Succession

There are a number of reasons for business owners to consider a business succession plan sooner rather than later.

The Other Sure Thing

The Other Sure Thing

Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared?

 

Have A Question About This Topic?







Thank you! Oops!

IRA Withdrawals that Escape the 10% Tax Penalty

The list of IRA withdrawals that may be taken without incurring a 10% early penalty has grown.

How Will You Be Remembered?

How are you protecting your own memory through adequate legacy planning that will pass your gains safely on to your family.

Layers of Protection

Take these five steps to protect your financial well-being before making any other changes.

View all articles

Potential Income from an IRA

Estimate your monthly and annual income from various IRA types.

Comparing Investments

This calculator compares the net gain of a taxable investment versus a tax-favored one.

How Much Home Can I Afford?

With a few simple inputs you can estimate how much of a mortgage you may be able to obtain.

View all calculators

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

View all presentations

RE: Retirement

How does your ideal retirement differ from reality, and what can we do to better align the two?

Once Upon a Goal

Do you know how to set up your financial goals for success? This knight does.

When Do You Need a Will?

When do you need a will? The answer is easy: Right Now.

View all videos