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Use Life Insurance To Help Second Marriage Estate Planning Issues

download (12)How do you create conditions for both your present spouse and your kids from a past marriage when you die? You can remove potential economical friction after you die with the help of insurance plan coverage. Here’s how… Should keep all your money to your present spouse for her to use while she is living yet ask her to be sure to keep a reasonable legacy to your kids from a past marriage? I don’t think so and here’s why… The common strategy to deal with bequests to protect previous kids and a present spouse is by developing a trust. You wish to sustain your present spouse at her quality of life while she lives and have what continues to be at her death go to your kids of your first wedding. So you organize to invest a trust to do just that when you die.

Two issues affect this strategy. The first is that your kids, as ‘remainder beneficiaries’ of the trust, may think that your spouse is using up too much of the finance in fulfilling her recognized quality of life. They can – as remainder beneficiaries of the trust – lawfully challenge distributions from the trust to their stepmother if they experience it’s over and above what the trust may allow to sustain her living standard. This, of course, can create difficult emotions and aggravate members of the family connections. The other issue is that your kids must wait until your spouse – their stepmother- passes away to get your legacy to them. This can furthermore create disappointed relationship. So, create certain provision for your kids of a past wedding now to protect your desires and decrease possible issues between them and your present spouse after you die.

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