When you remarry, your estate plans have to change. While no one likes to acknowledge their estate plan often, you do need to consider it. Otherwise, you could unintentionally disinherit your children.
According to CNBC, when you remarry, you need to talk to your spouse about both sides of the family regarding your estate plan.
Think about your account beneficiaries
When you remarry, you need to update the beneficiaries on your life insurance policies and retirement accounts. Some people assume that divorce changes the beneficiary, but if your ex-spouse remains on those accounts, he or she will receive the money when you die.
If you have a 401(k), your new spouse becomes the beneficiary. If you die before your spouse, you have no guarantee that he or she will share that wealth with your children. Communicate clearly about your intentions with your spouse.
Set up an estate plan that includes your children
If you die intestate, then the government chooses who receives your assets. If you die before your spouse, he or she receives everything. Your spouse may not know which assets you want to give to each of your children or how much of your wealth you planned to share. You know your children best. If you have a spendthrift child or young children, you may want specific rules for a trust that your partner does not know.
Communication and planning are key to ensuring that your children receive their inheritance. Be transparent and set up a plan for someone to handle your health and financial decisions when you cannot.
