Remarrying after a divorce or the death of a spouse is a choice that often inspires a need for additional estate planning. Not only do people need to consider what support their spouses may require, but they also need to think about their children from a prior relationship.
For example, many parents intend to pass their family home to their children as a group when they die. However, a spouse may not want to leave their new partner without housing after their passing. For many people remarrying, a trust is an important tool for preserving resources for their children.
How trusts can help
Trusts offer thorough guidance regarding the management and distribution of property. A trustee can allow people to use and access resources without actually transferring ownership and control of those resources.
A new spouse can live in their marital home for the rest of their life or until they remarry, depending on the terms set in the trust. The goal may be to preserve the equity accrued in the home for the benefit of the children of the spouse who passed first. Trusts can help preserve financial accounts, businesses and other valuable resources for multiple different beneficiaries.
Trusts also reduce the likelihood of probate litigation damaging the connection between a stepparent and the children of the parent who died. When there are clear instructions and framework for protecting everyone in the family, people can maintain their relationships more effectively.
Clarifying intentions with a new spouse and with children, if they are older, can be as important as drafting new paperwork that adequately addresses family circumstances. Creating a trust is often a helpful step for those with children who now also have spouses not related to their children to support.