There are those who correspond the idea of the premarital agreement with the weakening of real romance, but this impression is now starting to soften. The fact is that if all marital unions were very first marital relationships happening between 2 young people with no kids and no considerable personal properties a prenuptial contract might undoubtedly appear unneeded. But nowadays, marital relationship is merely not the very same institution that it was in years passed.
Stats tell us that nearly half of all very first marital relationships end in divorce, and 3 out of four of these individuals subsequently remarry. In a lot of cases at least one of them had kids from a previous marital relationship or marital relationships.
To add another pertinent fact, most of 2nd and 3rd marital relationships do not last. So when you absorb the odds, entering into a remarriage without a prenuptial arrangement in location might be irresponsible.
Even if you are specific that “this is the one,” how can you make certain that your new partner will look after your children as you would if you were to be eliminated in an automobile mishap a month into the marriage? Your partner’s family might argue that your different property has been converted to neighborhood property.
One method to handle a remarriage with full stability from an estate planning perspective is to execute a prenuptial agreement that specifies your different property as you enter the union. You can deal with your estate planning attorney to develop a qualified terminable interest property trust, an automobile that is frequently described as a “QTIP” trust.
The way a QTIP trust works is that you fund the trust and call your recipients, who would most likely be your kids. If you predecease your spouse he or she gets all of the income from the trust for life and restricted or no access to the principal (you choose), but has no say with regard to inheritance of the balance of principal possessions. When the making it through spouse dies, your kids presume ownership of the trust assets in accordance with your dreams.