Helping Clients Navigate A Course To A Better Future

Protecting money and assets in a second marriage

Those who get married for a second or third time in North Carolina may have unique issues to account for. In many cases, those who are getting married again are older and have more assets to protect. Parents may also need to ensure that children receive their inheritance in the event that parents pass on or become incapacitated. Without proper planning, a surviving spouse may receive a deceased person’s assets instead of the children.

At that point, there is no guarantee that a biological child will get money or other assets that he or she was supposed to acquire. A prenuptial agreement can be ideal for those who are getting married again. Such an agreement helps ensure that both biological children and the new spouse are taken care of in the event of a death or divorce.

The use of a qualified terminable interest property, or QTIP, trust can ensure that a spouse has enough to live on until he or she passes. Once that happens, a child will receive whatever is left in the trust. It can also be a good idea for individuals to update their wills. This allows a person to spell out his or her estate planning intentions in a manner that everyone can understand. Beneficiary designations should also be created or updated if necessary.

Crafting a prenuptial agreement can make it easier to determine who gets what at the end of a marriage. This way, assets such as a business or bank account may be protected in the event that a divorce occurs. This can help to ensure that an individual has the resources that he or she needs to live without a partner to rely on. It may also ensure that a child still receives his or her full inheritance.