There are those who equate the principle of the premarital arrangement with the weakening of real love, but this impression is now starting to soften. The truth is that if all marital unions were first marital relationships happening between 2 young adults with no children and no considerable personal properties a prenuptial agreement might undoubtedly seem unnecessary. However these days, marital relationship is just not the exact same institution that it was in years gone by.
Stats inform us that nearly half of all very first marriages end in divorce, and 3 out of 4 of these people consequently remarry. At least one of them had children from a previous marital relationship or marriages.
To tack on another pertinent reality, most of 2nd and 3rd marital relationships do not last. When you absorb the odds, getting in into a remarriage without a prenuptial agreement in place might be careless.
Even if you are specific that “this is the one,” how can you be sure that your new spouse will take care of your children as you would if you were to be eliminated in an auto accident a month into the marital relationship? Your spouse’s family might argue that your separate property has been converted to community property.
One method to handle a remarriage with complete stability from an estate planning point of view is to carry out a prenuptial contract that defines your different property as you get in the union. You can work with your estate planning attorney to create a certified terminable interest property trust, a car that is frequently referred to as a “QTIP” trust.
The way a QTIP trust works is that you fund the trust and call your recipients, who would probably be your children. If you predecease your spouse he or she gets all of the earnings from the trust for life and restricted 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 dies, your kids assume ownership of the trust possessions in accordance with your dreams.