There are those who relate the principle of the premarital agreement with the undermining of true romance, however this impression is now starting to soften. The truth is that if all marital unions were very first marriages happening between two young people without any children and no significant individual properties a prenuptial contract may certainly appear unnecessary. However these days, marital relationship is just not the very same institution that it remained in years passed.
Statistics tell us that nearly half of all first marital relationships end in divorce, and 3 out of four of these people subsequently remarry. At least one of them had children from a previous marital relationship or marital relationships.
To add another relevant fact, the bulk of second and third marriages do not last. When you digest the odds, entering into a remarriage without a prenuptial arrangement in location may be irresponsible.
Even if you are certain that “this is the one,” how can you make certain that your brand-new spouse will look after your children as you would if you were to be eliminated in an automobile accident a month into the marriage? Your spouse’s family may argue that your separate property has actually been transformed to community property.
One method to handle a remarriage with full stability from an estate planning point of view is to perform a prenuptial arrangement that defines your separate property as you go into the union. You can work with your estate planning lawyer to produce a certified terminable interest property trust, a vehicle that is typically described as a “QTIP” trust.
The method a QTIP trust works is that you fund the trust and name your beneficiaries, who would probably be your kids. If you predecease your spouse he or she gets all of the earnings from the trust for life and minimal or no access to the principal (you decide), however has no say with regard to inheritance of the balance of principal possessions. When the making it through partner dies, your kids presume ownership of the trust properties in accordance with your wishes.