Estate Planning and Remarrying

Marriage has significant influence in relation to the Estate Planning. The implications of the second marriage on the estate that could be eventally available to your children from the first or previous marriages need careful deliberation. For instance, your first marriage bore you two children and then you decided in favor of the second marriage and there is presence of a clause in the will that specifies that transfers everything in your estate in the name of the current spouse, this will eventually leave the children from the previous marriage entitled to nothing in the case of your death. If the children have attained the age that is commonly referred to as the age of majority, there is no statutory right that is available to them in relation to inheriting of their deceased parents.

In the contemporary business world, there is increasing trend in relation to the inserting of the clauses in the wills, creating of the trusts to achieve the objective of safeguarding the estate from potential claims and liabilities. A quite reliable method in relation to the preparation of the new wills is to execute the same with a qualified terminal interest property. The potential outcome of the QTIP is that it will generate an income stream with regard to the current spouse and also provide for the property for the children of yours from the former marriage.  

Following enumerated points should be considered in the event of the remarriage or the divorce

• In either case, it is beneficial to prepare new will, attorney powers in relation to the property and  lastly the directive with regard to the health-care. 
• In the case that you are receiving pension as a widow or the widower, it is important to consult the  administrator if remarrying will void such pension stream. 
• It is important to check mark that each of the spouses has property to their name that will afford them an opportunity in relation to taking advantage of the unified credit amount.
• Prenuptial agreement need to be executed. In the court of law it may lose enforceability if it is post dated however it will certainly be evidence in relation to property ownership for estate tax implications.

The list is not exhaustive and consulting your estate planner is quite necessary to execute comprehensive plan of how to design your estate plan yielding you more control over your property.

Qualified Terminable Interest Property (QTIP)

The nature of the Qualified terminable interest property (QTIP) is such that it not only allows the grantor to cause provision for the living spouse in addition to the maintenance of the control in relation to how the assets are going to be distributed in the case of the death of the surviving spouse. The income along with the principal in some cases that is generated from the creation of the trusts is the right of the living spouse that allows the spouse to live the rest of the life with care and comfort.    

Who Uses QTIPs?

The trust is quite used by the type of individuals that have children from the former marriages. QTIP allows the grantor control in relation to the allocation of the estate and property among both his living and current spouse and the children from the previous or former marriages. Stated differently, the grantor has choice with regard to the beneficiaries that are entitled to the estate in the event of his death.