After a second marriage, the children of the surviving spouse generally come first in estate planning, unless the deceased spouse's explicit wishes are recorded in a written agreement. This is because, in most second marriages, assets are held jointly with the deceased's spouse, creating a situation where the property automatically passes to the spouse upon the first spouse's death.
When an individual remarries, the children from the first marriage may feel neglected if the new spouse gains the majority of the assets. This is exacerbated if the new spouse has children from their own prior marriage, leading to potential disputes over who deserves what portion of the inheritance.
However, with careful estate planning, the interests of both the spouse and the children can be protected. For example, a qualified terminable interest property trust, or QTIP trust, can be established to provide the surviving spouse with income payments for life while preserving the property for the children and grandchildren of the first marriage. Additionally, joint property can be held in a joint trust, which automatically passes to the surviving spouse upon the first spouse's death.
Furthermore, it is crucial to have clear and enforceable wills and living trusts that clearly outline the distribution of assets. If these documents are properly prepared and executed, the children's expectations can be balanced with the need to provide for the new spouse.
Finally, it's essential to understand that estate planning is an ongoing process that should be regularly updated to reflect changes in family circumstances, such as the birth of new children or the death of a spouse. By proactively planning and updating estate plans, blended families can prevent unnecessary disputes and conflicts.
