When you think of marriage, you likely think of doves, flowers, white dresses, cake, and eternal love, right? When a lawyer thinks of marriage they think of something a little less romantic: contracts! I know it’s not exciting to think of your upcoming nuptials as a contract, but hey, it is what it is. Why not set aside your weird feelings about it and define the financial terms of the marriage instead. Think of a prenuptial agreement as an extra document in your estate plan.
What is a prenuptial agreement?
A prenuptial agreement (better known as a prenup) is a legal document that couples enter into before getting married. This agreement sets out the terms and conditions of what happens if the couple splits up. It can be something as simple as specifying how property will be divided or who will financially support whom in the event of a break-up.
A will vs a prenup
A will and a prenup are very similar. Both are legal documents that set forth the wishes of an individual regarding their estate. Like a will, a prenup can also address a surviving spouse’s rights upon the death of the other spouse. Spouses may choose to waive their inheritance rights entirely or specify what each spouse should receive upon the death of the other.
Best practices for obtaining a prenuptial agreement
Follow these steps if you want your agreed-upon inheritance rights upheld in court.
Before the Save the Dates
It is best to begin the prenuptial agreement process long before your desired wedding date. Waiting until the week or even the month before your wedding may indicate to a future court that the agreement was signed under duress and should not be enforced.
Both parties must disclose all of their assets and liabilities to each other. You should gather your most recent records for any stocks and bonds, retirement accounts, checking and savings accounts, and even an appraisal for your house and car. Make a list of any student loans, personal loans to family or friends, mortgage debt, and car loans. If you do not disclose all of your assets and liabilities, your prenuptial agreement may be invalidated by the court.
After the Honeymoon
After you have signed your prenuptial agreement and married your spouse, your attorney may advise you to record your prenuptial agreement with the clerk’s office. While this is a great option to ensure you will always have access to a copy of your prenup, it is important to note that if recorded, your prenup will become a public record. A more private alternative would be for each spouse to keep a copy of the agreement in a fire and waterproof lockbox with other important documents.
Create an estate plan after the marriage
Shortly after your marriage, you should create or update each of your estate plans with your marital status. Update the estate plans again if you have children.
In conclusion: A prenuptial agreement is financially smart
Prenups are becoming more popular and are perfect for young couples who are still learning how to navigate being an adult in this world. Overall, a prenuptial agreement is not an indication that your or your spouse believes the marriage will fail; instead, it lays a strong financial foundation for the marriage. Both parties walk away feeling protected and confident that there will be no ambiguity or surprises later in life.
If you are not sure if a prenup is right for your situation, consider reaching out to our office. Our attorney can help you figure out what to do. Book your free 15-minute initial call now!
Many people do not begin to think about estate planning until well after they have started a career, gotten married, or had children. By the time we reach the point in our lives where we begin to think about what will happen to our belongings and our loved ones after we die, we have often already experienced big life changes. For many of us, that could mean multiple marriages and a blended family. So when we sit down to work out our estate plan, how do we navigate the murky waters of estate planning for blended families?
Can I use a prenuptial agreement in an estate plan for my blended family?
Just like with other estate planning tools, a lot of couples do not want to think about obtaining a prenuptial agreement. After all, who can blame an engaged couple for not wanting to think about how their marriage might end? However, just like other estate planning tools, prenups have a bad rap. They can be incredibly useful for couples with a lot of assets, or blended families who want to keep certain properties separate. Through a prenuptial agreement, you and your spouse will be able to delegate which property is joint and which is to remain separate. This can make the division of your assets among your blended family a lot easier in the event one spouse predeceases the other.
What is a Life Estate on property in Tennessee?
A lot of the time, when a couple remarries, one spouse will move into a home owned by the other. If this is the case for you, it may be worth considering a life estate.
What is a Life Estate?
A life estate is an ownership interest in real property for the duration of a person’s life. In other words, a life estate will allow the surviving spouse to continue living in the marital home until the end of their life without them inheriting the house outright or passing it down to their own children.
Use a Trust when Estate planning for blended families with multiple children
I want to make sure my children inherit from my estate
In some cases, your spouse may not distribute your estate to your children the same way you would. If you have certain assets or a specific amount of money you wish to go to your children, your best bet is to leave it directly to your children through a trust. Of course, this can be a difficult discussion to have with your spouse, but it may be the best decision for your family.
These are just three estate planning tools to consider for your blended family. There are dozens of others that you, your spouse, and your lawyer may find better suit your needs. Blended families are exciting and rewarding, but it is important to maintain your estate plan through one of life’s biggest changes!
If you’re a blended family with questions about how to create your estate plan in Tennessee, consider contacting an estate planning attorney to discover what is best for your situation.
One of your main concerns when drawing up an estate plan in Nashville will be appointing a guardian for a child in case of death. As a parent, you likely consider “what if’s” every day. Estate planning is no different, especially when it comes to your children. There are multiple considerations to keep in mind when thinking of a potential guardian for your children. We will go over a few of these below.
What if I Am No Longer in a Relationship with My Child’s Other Parent?
Tennessee law presumes that the parents of a minor child are the child’s “natural guardians”. If one parent dies before the other, the surviving parent will usually obtain full custody of the child.
If parentage has not been legally established, you may want to appoint the child’s other parent as the legal guardian in your estate plan. Naming the other parent will ease the transition through the legal system. A court may need to establish a child’s parentage if they were not married at the time of conception and birth. A court will decide a child’s parentage for custody or inheritance purposes.
Hopefully, there are no concerns about your child’s welfare if they need to live with their other parent full-time. However, if you have concerns, consider them objectively and put them in writing. Write down the name of the person you prefer to appoint as the guardian of the minor children. The only way to make sure the other parent does not gain custody is to have their parental rights terminated. This is an extreme measure.
If the surviving parent is the father, a paternity test will be required before petitioning the court for custody. Paternity can be established through a signed birth certificate, an acknowledgment of paternity form, or a blood test. Establishing paternity typically grants a father certain rights in regard to his child. However, paternity is not a guarantee that he will be awarded custody of the child. The court will use its own judgment to determine which guardian would be in the best interests of the child.
What If I Am Married to My Child’s Other Parent, but Something Happens to Us Both?
Generally, the surviving spouse will be granted custody of any minor children. But what happens if you both die? You must consider who you want to care for your children in the event that neither of you is living. Failing to do so could result in confusion and trauma for grieving children.
Many people make the mistake of believing that if you die, the guardian of a child will be granted to grandparents, aunts, or uncles. However, if the will does not specify a guardian, the court may be faced with multiple petitions for guardianship from family members and friends. In this scenario, the judge will choose a guardian with no input from you. So, what should you consider when choosing a guardian for your children?
Who should I consider appointing as a guardian for my children in my will?
Did you know that you can appoint different guardians for your child to manage different aspects of their future? The most obvious guardian is the one who will have custody and take care of your child. This guardian will provide a home and make important decisions for your child. These decisions can be about doctors, schools, and how they maintain relationships with friends and family.
You may also decide to appoint a separate guardian for your child’s financial future. This person would be in charge of the administration of a trust or other financial planning arrangement. If you want to learn more about leaving property to a minor child, read this article.
Whether you appoint one or multiple guardians, you will need to carefully weigh several important factors such as:
Age and Ability of the Guardian
Your first choice for your children’s custodial guardian might be your parents; after all, they raised you! However, it is important to consider your parents’ age and physical ability to care for your children. This may be especially relevant if your children are younger or have special needs. Similarly, think about your preferred guardian’s emotional ability as well. Appointing your younger sister as a guardian for your child who has yet to finish school or maintain a job may not be the best choice. You will need to choose someone who is both physically and emotionally capable of providing for children.
Religion and Education
If you intend for your children to follow certain religious practices or receive a certain type of education, it is important to choose a custodial guardian who holds your values or who you know will follow through with your wishes. Naming a specific church or school that you want your children to attend does not mean that your custodial guardian will have to obey that wish.
Location of the Guardian of your Child
You will also need to decide if it is important that your children are raised in a certain city or state. In some cases, your desired custodial guardian may not be able to relocate for the sake of your children. In that case, your children may need to move to the custodial guardian’s home or you may need to select somebody else.
Specify each child’s guardian(s) and their role in your will
Finally, be sure to name all of your children in your will, and specify what role you want each guardian to play for each of them. Your attorney may advise you to select both a primary guardian and an alternate guardian. Most importantly, do not forget to ask your guardian if it is okay to name them in your will. As your children age, you may want to change the legal guardian. Ask a qualified attorney to help you modify your will if you want to do this.
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