Estate planning is crucial, especially for people who had kids in the previous marriage. This ensures that the children do not get disinherited, and the spouse does not feel left out. The stakes are higher if one does not plan their estate after remarrying.
According to CNBC, in the event of their death, kids from the previous marriage get disinherited. The new family dynamics will require a reshuffling of resources and authority. With a will and an estate plan, all parties will feel cared for, and conflicts will get resolved easily.
There are several things one needs to consider when reshuffling the resources. For instance, due to age and disability, some members will require more support than others. They, therefore, have to reevaluate the obligations of the former spouse and the options they have for supporting their new family. One also needs to reevaluate the beneficiary designations on other insurance policies and retirement accounts.
The review will cover the various roles for spouses, young and adults’ kids, and stepchildren. This process could easily get overlooked during the first few years of marriage. However, it may be a process that one wants to start as soon as they make the engagement official. This way, all details get coverage.
According to CNN, many people remarry without updating the beneficiary of their estate. Remember that anyone on that list will get the money when one dies. This designation is stronger than a will. If one dies and their beneficiary is their ex-spouse, they will get all the property and money. With all the estate planning, ensure that one designates resources to the right beneficiary.