Jun 1, 2010 12:00 PM

Planning it right the second time around

By Elaine M. Bucher & Nathaniel Birdsall

Estate planning in the context of second marriages is increasingly common and necessary in the evolving world in which we practice. Estate-planning techniques that are effective for spouses in first marriages may be unsuited when applied to families in which one or both spouses have children from prior marriages, or in which each spouse otherwise wishes to provide for different beneficiaries. A successful estate plan for a client in a second marriage must satisfy the client's obligation to his prior spouse, provide for the possible exercise of a surviving spouse's elective share rights and fulfill the client's dispositive intent. This task is complicated where the client has a blended family, since its members often have competing goals and loyalties, increasing the risk of future disputes as to the client's dispositive intent. To foresee and avoid future conflicts, the estate planner must first obtain a working knowledge of the client's financial and familial history, then employ elective-share planning, marital trusts and other estate-planning techniques to ensure that the client's wishes are achieved.

The likelihood of conflicts increases in “blended families” in which each spouse has children from a prior relationship, possibly in addition to children born within the new marriage. Creating an estate plan that takes into account the unique financial situation of each child (and navigates the rivalries between children of different marriages) can be a challenging proposition, particularly when the age range of the children is significant.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

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