If you decide to get remarried in California, you may obtain an extended family quickly. In this situation, examining your estate planning and determining if it’s appropriate and follows your current wishes is essential. Sometimes, individuals get remarried and make mistakes that disqualify their first family from receiving an inheritance. Understanding those mistakes can help you avoid them.
Failing to change beneficiaries
One of the functions of estate planning is naming the proper beneficiaries in your will. Surprisingly, some people forget to change beneficiaries after getting remarried. Doing so is critical to ensure your ex doesn’t get your money when you pass away or become incapacitated.
Leaving your will the same
Another costly mistake individuals make after getting remarried is failing to change their will. Not doing so may result in unwittingly leaving your home and other assets to an ex-spouse. If that’s not your wish, you must change your will to reflect your new intentions.
Splitting assets equally
If you were married for several years before getting remarried, you may have children from the first marriage and want to leave your home or specific assets to them. When you utilize estate planning, you can specify who receives your assets. This process can also be helpful if you want to set up a trust. Doing so may benefit a child from a first marriage with special needs.
Giving when you’re gone
Another mistake individuals make is leaving all their assets to their children after passing away. If you wait until then, you can’t enjoy seeing how they use the money. Taking advantage of the $15,000 per person limit while you’re alive allows you to experience the pleasure your gift provides and avoid paying the IRS a gift tax.
Being proactive with your estate plan after you get remarried can be critical. Otherwise, your assets may not be distributed in accordance with your wishes.