Discussing the Un-Discussed - A Problem Solving Method
I blogged earlier this week on how your marital status can have a significant impact on your estate plan. I focused on the apparent recent trend to not legally marry, but to remain in a common-law relationship, and the particular challenges that an estate faces in such a circumstance. What I began to think about shortly after writing my previous blog was how legal marriages can have equally significant impacts on your estate plan.
With close to 35% of Canadian marriages falling into the second (+) marriage category, the challenges faced by such couples are being addressed routinely and bring unique estate planning concerns. Financial planning during your lifetime has a direct impact on your estate, and can often be the difference between a family estate fight and a straightforward estate administration.
We no longer live in a world where the ‘nuclear family’ is the norm. Families now come in a variety of definitions, which, from an estate planning perspective, causes a variety of other issues. A recent article in the Globe and Mail addresses some of the issues that arise in second and third marriages and financial planning, including concerns from adult children about ‘gold-digging’, spending habits, and obligations to previous spouses amongst others.
A particular challenge for individuals marrying for a second time can include melding of families, children, assets and coming to a general understanding, for all involved as to how your savings will be passed on. Perhaps a life interest for your spouse ought to be considered, or perhaps a complete separation of assets during marriage, with particular funds used for joint expenses, making the question of inheritance somewhat easier. Whatever the ‘perfect’ solution to the various problems that arise due to a second marriage, the key to dealing with financial issues is to know what those issues are to begin with.
If blended families can take steps to deal with the financial issues up front, explaining intentions to their children for both their choices during lifetime and the choices for after their death, the courthouses might become a tad quieter, and you may be able to rest in peace.
Stay Tuned,
Nadia M. Harasymowycz - Click here for more information on Nadia Harasymowycz.
