There are those who relate the idea of the premarital arrangement with the undermining of real romance, but this impression is now beginning to soften. The truth is that if all marital unions were very first marital relationships taking location in between 2 young grownups without any children and no significant personal assets a prenuptial agreement might undoubtedly seem unnecessary. These days, marital relationship is merely not the very same institution that it was in years gone by.
Data inform us that nearly half of all very first marriages end in divorce, and 3 out of four of these individuals consequently remarry. At least one of them had kids from a previous marital relationship or marriages.
To add another appropriate truth, most of second and third marital relationships do not last. So when you digest the odds, participating in a remarriage without a prenuptial arrangement in place may be irresponsible.
Even if you are certain that “this is the one,” how can you make sure that your brand-new partner will look after your kids as you would if you were to be eliminated in an automobile mishap a month into the marital relationship? Your partner’s family may argue that your separate property has been converted to neighborhood property.
One method to handle a remarriage with complete stability from an estate planning perspective is to perform a prenuptial contract that specifies your different property as you get in the union. You can work with your estate planning lawyer to produce a certified terminable interest property trust, a lorry that is typically referred to as a “QTIP” trust.
The method a QTIP trust works is that you money the trust and name your recipients, who would most likely be your children. If you predecease your spouse he or she receives all of the earnings from the trust for life and limited or no access to the principal (you decide), however has no say with regard to inheritance of the balance of primary assets. When the surviving spouse passes away, your children presume ownership of the trust possessions in accordance with your wishes.