When a second marriage occurs, children from a previous relationship may have concerns about what will happen to your assets after you die. They may worry that their inheritance will no longer be protected. To address the concerns of both second spouses and children from a previous relationship, it is important to update your estate plan after a remarriage. One potential solution may be to add a Qualified Terminable Interest Property trust, or QTIP trust, to your estate plan.
5 Reasons a QTIP Trust May Be a Worthwhile Amendment to Your Estate Plan After a Second Marriage
Why consider amending your existing trust or existing estate plan to include a QTIP trust or QTIP provisions? The following are five reasons that may make sense for your family:
- A QTIP trust can help make it clear to children from a previous marriage that their inheritance will be protected.
- A QTIP trust will eliminate most concerns of these children that the new spouse might waste or squander their inheritance.
- Even if your new spouse has an excellent relationship with your children, you cannot predict what will occur after your death. A QTIP trust makes your wishes permanent.
- Family tension often arises as a result of a death. This tension might negatively influence your new spouse’s decision making about the distribution of assets to children from a previous marriage. The QTIP trust takes all emotion out of the equation and requires that your assets be distributed as they were written in your estate plan before you died.
- Similarly, a QTIP trust can help alleviate a new spouse’s concerns about receiving assets in the event of your death. For example, the surviving spouse will know that he or she can remain in the marital home and have access to a regular income even if, ultimately, your assets pass to your children.
While QTIP trusts may be beneficial for many families, they are not necessarily the perfect choice for everyone. It is important to consult with an experienced attorney before making any changes to your estate plan.