What Is Estate Planning for Second Marriages?
If you’re one of the many Americans in a second marriage, it may be time to revisit your estate strategy.
Unlike a typical first marriage, estate planning for remarriage often requires special consideration — particularly when it comes to addressing children from a prior marriage and the disposition of assets accumulated before the second marriage.
Key Considerations for Second Marriage Estate Planning
Here are some ideas to think through when updating your estate strategy for a second marriage:
Provide for Children and Your Spouse
You may want to ensure your children from your first marriage are set up to receive assets from your estate, even as you provide your second spouse with adequate resources to live on should you pass away first.
Review How Assets Are Titled
Consider the titling of your assets carefully. Assets jointly owned in your name and your second spouse’s name are typically set up to pass directly to your second spouse — often regardless of any instructions in your will.
Understand Beneficiary Designations on Retirement Accounts
If you’re designating your second spouse as beneficiary on retirement accounts, keep in mind: once you die, the surviving spouse can name any beneficiary of their choice, regardless of any prior promises to name your children from a previous marriage as successor beneficiaries.
Review Prenuptial and Postnuptial Agreements
Consider reviewing any prenuptial and postnuptial agreements with a professional who has legal expertise in estate management.
Address Age Gaps Between Spouse and Children
If your new spouse is closer in age to your children than to you, your children may worry they’ll never receive an inheritance. One way to help address this concern is by passing assets to them upon your death — an approach sometimes accomplished through the purchase of life insurance.
Plan for Long-Term Care Costs
Consider approaches that may help protect against the drain that extended care costs can have on assets designed to support your spouse or pass to your children.
Frequently Asked Questions
Why does estate planning matter more for second marriages?
Estate planning for second marriages involves balancing the needs of a current spouse with the interests of children from a previous marriage — a dynamic that doesn’t typically arise in a first marriage. Without careful beneficiary planning for second marriages, assets may not pass the way you originally intended.
How does asset titling affect estate planning for remarriage?
Assets that are jointly titled in your name and your second spouse’s name generally pass directly to your second spouse upon your death, often regardless of what your will states. Reviewing how assets are titled is an important step in second marriage estate planning.
Can my second spouse change beneficiaries on retirement accounts after I die?
Yes. Once you pass away, a surviving spouse who was named as beneficiary can generally name any beneficiary of their choice — even if there was an informal agreement to eventually name children from a previous marriage as successor beneficiaries.
How can I make sure my children from a previous marriage receive an inheritance?
Some individuals use life insurance to help pass assets directly to children from a previous marriage, particularly when a new spouse is closer in age to the children than to the policyholder. Several factors affect the cost and availability of life insurance, including age, health, and the type and amount of coverage purchased.
Should I revisit prenuptial or postnuptial agreements as part of estate planning?
Yes. If you have a prenuptial or postnuptial agreement, it’s worth reviewing it alongside your broader estate plan with a professional who has legal expertise in estate management, to ensure the two are aligned.
