Many people in Texas get married after having been previously divorced or widowed. The chance at a fresh start for a happy marriage and life is something to celebrate indeed. However, blending families may not always be easy and some of the issues that couples in these marriages face may not be evident at the outset. Looking down the road to the day when one of the spouses dies, it is important for a good estate plan to be in place.
As explained by Policy Genius, a stepparent may or may not always pass on heirlooms or other assets to the children of the previously deceased spouse simply out of goodwill. A basic will may not give a person enough flexibility to leave assets to both a surviving spouse and to one’s children. For this reason, a qualified terminable interest property trust may be a good option for a remarried person.
With a QTIP trust, a person may name their children to be remainder beneficiaries and their spouse to be the lifetime beneficiary. The spouse would receive an income from the trust for the rest of their life with all trust assets then flowing to the children upon that spouse’s death. A QTIP trust may also defer taxes until the surviving spouse has died.
This information is not intended to provide legal advice but is meant to give residents in Texas who are going to be getting married for a second time an overview of how they may provide for both their new spouse and their existing children through a trust designed just for their situation.