3 ESTATE PLANNING ERRORS TO AVOID WHEN YOU REMARRY
September 23, 2020
Certain life events warrant a fresh look at your estate plan, and getting married for a second time is among them. Failing to update your estate plan when you remarry in Michigan may impact your new spouse as well as any children you have from your previous marriage. So, it is worth taking the time to update it in accordance with your new circumstances.
According to Barrons, many people in your shoes make similar mistakes when updating their estate plans ahead of or after a second marriage. Recognizing what these common errors are may help you avoid making them yourself. Common estate planning mistakes to avoid when remarrying are as follows.
1. NEGLECTING TO PROTECT YOUR CHILDREN FROM A PREVIOUS MARRIAGE
Do not assume that, in leaving assets to your new spouse, he or she is going to provide for your children once you die. To better protect your children, you may want to consider leaving them assets in a revocable trust.
2. NEGLECTING TO PROTECT YOUR ASSETS FROM YOUR FIRST SPOUSE
You may not want your ex to be the beneficiary listed on your life insurance plan or retirement accounts. If you have already listed your former spouse as the beneficiary, consider updating your beneficiary designations when you remarry.
3. NEGLECTING TO PROTECT YOUR NEW SPOUSE
While protecting children from a previous marriage is important, so, too, is protecting your new husband or wife. You may be able to use specific estate planning tools to help ensure that both your children and your spouse receive what you want them to after your death.