Prenuptial Agreements And Estate Planning, Part 2
The first part of this article addressed the idea that a prenuptial agreement may be a useful estate planning tool. This segment will briefly discuss some of the important questions to consider in formulating a prenuptial agreement/estate plan prior to marriage. Here are some questions to consider:
- What provisions should be made if the death of one of the spouses occurs during a separation or pending divorce?
- What provisions should be made if one spouse predeceases the other during the course of the marriage?
- What specific devises do you wish to make?
- How will special personal property such as family heirlooms be distributed upon death?
- If you have a life insurance policy or retirement plan, who are the intended beneficiaries?
- How will property be distributed in the event of either spouse’s death? Will the surviving spouse have any rights to live in the marital home or receive any income?
- How will property be distributed in the event of either spouse becoming incapacitated or disabled?
- If one spouse becomes incapacitated or disabled, who will manage the finances?
Couples accumulate assets and debts together after they marry. Each spouse typically has his or her own individual goals and desires as to the disposition of separate and marital property upon death. There must be a mutual understanding of each other’s desires and a resulting compromise to ensure that the needs and concerns of both spouses are properly addressed. Some questions here to consider are:
- Will all premarital assets and debts remain separate and distinct property, or, will some or all be intermingled with marital property?
- If one spouse’s asset is used to pay off the other spouse’s debt, will the payment be reimbursed, or will it be treated as a gift?
- How will property be characterized if purchased with one spouse’s separate, premarital property?
Entering a marriage with a prenuptial agreement may make dividing your estate less complicated and ensure that it will be distributed in accordance with your wishes. A prenuptial agreement that incorporates estate planning is a method of limiting a spouse’s share of an estate. Thus, a great majority of prenuptial agreements address the preservation and protection of marital and separate property, including provisions for its distribution upon the death of either spouse.
The Men’s Divorce Law Firm can offer assistance in drafting a prenuptial agreement that meets all of your needs, while offering financial protection. Call 321-DIVORCE today to schedule a consultation and follow our Twitter page for more insights about divorce and family law.