Monday, August 22, 2016

Estate Planning and Prenuptial Agreements

When people with children from previous marriages decide to wed, special issues arise when considering inheritance.  Parents are concerned that the rights of their children be protected, and pre-nuptial agreements can be the vehicle through which those inheritance rights are protected.

What is a prenuptial agreement? Basically, it is just a contract which goes into effect at the time of the marriage. The agreement should be executed well in advance of the actual wedding, and should include details about spousal support and/or the distribution of assets should there be a death or divorce.

The key value of having a prenuptial agreement is that the rights to support and inheritance are respected according to the agreed upon requirements in the event of divorce or death. The agreement is able to protect children from the previous marriage and also to protect any separate assets which were brought into the new relationship or earned during it.

In addition, owners of businesses can protect their business from coming under the control of an estranged ex-spouse. People who are the recipients of inherited wealth frequently want to protect those assets to remain in the family for their heirs.