The Best Gift for Second Marriage “Newlyweds” Might Be an Estate Plan

Added: (Mon Dec 21 2009)

Pressbox (Press Release) - Couples the second time around are likely to face higher stakes in assets and liabilities. Gene L. Osofsky, of the law firm Osofsky & Osofsky, believes that a gift more prudent for couples getting married again may well be an estate plan.

Not every first-time marriage is the charm. People are getting married with different partners at a dizzying pace nowadays, and these second marriages present a new set of challenges. Still, friends of the “newlyweds” might think again about bestowing linens, silver, china, or even something borrowed or blue in favor of an estate plan. “Marrying a person means marrying their financial issues as well,” says Gene L. Osofsky of the law firm Osofsky & Osofsky, “This may include children or responsibilities from a previous marriage, a family business, or wealthy and suspicious parents who still control the purse strings.”

In fact, such financial challenges are typical for couples looking for a “fresh beginning.” Many enter into their reconstituted unions with children to support, or significant income and savings disparities. “Spouses tend to be older and more established,” asserts Osofsky, “and this may make them hesitant about co-mingling financial lives, especially if money was a source of tension in their previous relationships.” In other words, a second marriage’s “fresh beginning” may involve “baggage.”

“When two people merge their finances, there will always be challenges,” Osofsky says, “but in the case of a second marriage – or even a third or fourth eternal union – the issues involved may be especially delicate.” Will it cause hard feelings if part of one spouse’s income goes to pay child or spousal support? Are college savings for step-children the responsibility of both partners or only the biological parents? What happens to joint property when one person dies – does it belong to the surviving spouse or to the children of the previous marriage?

Enter estate planning, perhaps as a gift, or maybe via more purposeful steps. “It’s crucial in these instances to create a clear plan to ensure that the needs of both the new spouse and the children or obligations from a previous marriage are met,” explains Osofsky, “This includes an estate plan to provide for their needs if the unthinkable should happen.”

“Discussion and planning early on will set clear boundaries and priorities for everybody and can go a long way toward easing tensions between two merging families,” Osofsky concludes.