Soap operas and steamy novels take many of their plots from real life nightmares that result from bad financial planning. If you both bring significant assets to the marriage or one brings much more than the other, someone is at risk of being disinherited. So, before you tie the knot again, here are five steps to take:
- Inventory individual assets and debt information before the wedding.
- Be honest with yourself. Determine your true objectives. Do you want to leave all your money to your second spouse? At your death, he or she may marry someone else and disinherit your children.
- Get good advice. Invest in a knowledgeable attorney, one who is experienced in estate planning matters. Your attorney can help explore the legal aspects of estate planning and draft all documents. And make sure to put everything in writing. You might also want to talk to your attorney about trusts, pre-nuptial agreements, wills, lifetime gifts, and more.
- Update life insurance , beneficiary designations. Do the same with your pension plans or your ex may receive life insurance proceeds at your death that you intended to give your spouse.
- Expand your estate at your death through life insurance. Life insurance can provide an immediate infusion of cash into your estate so that all your loved ones are provided for. Plus, thanks to increased longevity, it may be possible to obtain additional insurance at a reasonable rate, even if you are older.
- Did You Know...?
If you remarry, you won't lose your late spouse's social security benefits if you are 60 or older. You might even get more, depending on how much your new spouse's earning history.
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|Five Steps Before You Tie the Knot Again|