3 Reasons to Discuss Estate Planning With Your Ex
March 26, 2010
Creating an estate plan to protect your minor children is one of the most difficult—and most important—things you will ever do; this is especially true if you and your child’s other parent are separated or divorced. Relationships don’t always end amicably, but if you do have children it is definitely worthwhile to put aside your differences with your ex long enough to discuss estate planning for the sake of your kids.
There are three major things to consider when estate planning during or after a divorce:
- Guardianship
- Financial inheritance
- Remarriage
Guardianship: According to the law, if you pass away guardianship passes to your child’s other biological parent; this is the case even if you had full custody (unless it is determined that the surviving parent is unfit). This is something to keep in mind when you are nominating guardians. If you and your ex can sit down and discuss guardians together and agree on a few alternates it will make everyone (including your child) feel more secure about the future.
Financial Inheritance: Although many divorced couples may feel comfortable with their ex as guardian, most are dead set against their ex having any control over their finances. How then can you leave your estate for the benefit of your child without leaving it in the hands of your ex? The solution is to put your child’s inheritance in trust until they come of age, with a person you know and trust acting as trustee. Your trustee will have the responsibility to keep and maintain the trust, giving distributions to the guardian for the benefit of your child. Keep in mind that your trustee and guardian will have to work together quite often, if you and your ex can agree on someone with whom you both are comfortable it will make the process much easier on your trustee, your ex, and your child.
Remarriage: When you marry there is an inevitable mingling of finances, and this is no different for a second or third marriage. However, if you don’t make provisions for your children in your estate plan your assets may end up going to your new spouse when you die, leaving your child(ren) out in the cold. This can be easily addressed in your estate plan (or your ex’s estate plan, if he or she is the one getting remarried) as long as you talk to your attorney and take action now, before it’s too late.
If you are going through or have gone through a divorce you should have your estate planning attorney review your estate plan.
Michael Jackson’s Will Answers Few Questions
July 7, 2009
The past week has been filled with media speculation about Michael Jackson and his will: Did he have one and what might be in it? Well the waiting is finally over… kind of. It turns out Michael Jackson did create a will, which was submitted to the California probate courts earlier this week. The will (which can be viewed here) is five pages long, and because it pours “my entire estate” into the Michael Jackson Family Trust, the will itself reveals very little about the specifics Jackson’s estate or his instructions regarding the administration of it.
A will, although it can remain private during your lifetime, becomes a matter of public record once it is submitted to the probate courts after your death. But a trust is a private document, and in most cases remains private even after your death.
Jackson’s will does reveal a few details, though, namely who he chose as guardian for his children. In paragraph 8 of his will, on page 4, just above his signature, Jackson states:
“If any of my children are minors at the time of my death, I nominate my mother, KATHERINE JACKSON as guardian of the persons and estates of such minor children. If KATHERINE JACKSON fails to survive me, or is unable or unwilling to act as guardian, I nominate DIANA ROSS as guardian of the persons and estates of such minor children.”
Whether Jackson’s wishes for guardianship will be followed remains to be seen. As Jackson’s ex-wife and mother of his two oldest children, Deborah Rowe would normally automatically be awarded custody. However, there are still too many unanswered questions about the status of Rowe’s parental rights—and her desire to assert those rights—to make any claims for certain.
The one thing that is certain, however, is that whatever odd and inexplicable things Jackson may have done during his life, he seems to have done what he should to provide for his family’s financial needs and their privacy after his death.
Have you done the same?
Jinies.com