|Planning for Remarriage
Providing for Children from a Previous Marriage
|Use life insurance|
Your assets provide for your spouse while insurance proceeds give children an inheritance.
Can be done by:
- Making children beneficiaries of policies you own
- Making money gifts to adult children to pay premiums on policies on your life purchased
by your children
|Use an irrevocable life insurance trust (ILIT)|
Establish an irrevocable trust to buy life insurance for your children's benefit
as an alternative to you or your children owning policies on your life.
This option is especially appropriate if the children are minors or estate taxes
are a concern.
|Name children as beneficiaries of your retirement plan|
May need spouse's written consent to name anyone other than spouse as beneficiary
of certain retirement plans.
Distribution rules for nonspousal beneficiaries are complicated, and tax consequences
can be disadvantageous.
|Make your children joint owners of your property|
Gives children unlimited access to assets--they might have the right to sell assets
and use the proceeds for their own benefit.
Assets become subject to claims of child's creditors if child runs into financial
difficulty or gets a divorce.
The value of the property given to your children in a given year is subject to federal
gift tax if the value per child exceeds the annual gift tax exclusion amount ($15,000 in 2019).
Children will not receive a stepped-up basis for gifted property as they generally
would for property you leave them at your death.
|Leave your surviving spouse a lump sum|
Leave your spouse a lump sum and give the remainder of assets to your children.
Alternatively, leave children a lump sum and give remainder to your spouse.
These methods may be suitable if you have a small estate and few assets.
|Give your spouse the use of assets for life, with the remainder going to your children
at your spouse's death|
Can be accomplished through the use of a life estate and/or a qualified terminable
interest property (QTIP) trust.
May promote conflict between surviving spouse and your children. Children's inheritance
depends upon your spouse's spending and the way the assets are invested.
This communication is strictly intended for individuals residing in the state(s) of GA. No offers may be made or accepted from any resident outside the specific states referenced.
|Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.