Planning ahead can solve potential legal issues of remarriage

For senior adults, marrying again often brings a host of financial questions for the couple and their children. Careful forethought and planning, however, can prevent problems from occurring in the future.
   
One of the first concerns for most people is making sure the assets they have accumulated throughout their lives are protected for their children.
   
Before David and Ann Rice of Birmingham remarried, they examined their financial situation and came to what Ann Rice called a “perfect understanding” of their plans for the future.
   
“Children immediately think their inheritance is going down the drain [when a parent remarries], which is not true,” said Ann Rice, who has two adult children from her first marriage. “But there are certain things you want your children to be sure to get.” 
   
Because the Rices were downsizing to a new home, they decided to pass along many of their possessions, like jewelry and furniture, to their children.
   
“They got their inheritance as far as things go,” David Rice said with a laugh.
   
The couple also planned for the future by reviewing the beneficiaries of their insurance and retirement plans and by making new wills to cover their remaining possessions.
   
Knowing the number and type of policies you have and who is named as beneficiary is an important first step in making estate plans, according to Barry Bledsoe, president of The Baptist Foundation of Alabama. Additionally, having an up-to-date will can help ensure that assets go to the right people after the owner’s death.
   
Some couples choose to sign a prenuptial agreement, a legal document that outlines how property will be distributed if a marriage ends. However, the Rices did not.
   
“Many people recommended that we sign a prenuptial agreement,” said David Rice. “I don’t think they’re bad, but for us there was a trust issue involved.”
   
Charles Stroud, director of missions for Shelby Baptist Association, agreed.
   
“I’m not really in favor of prenuptial agreements,” he said, “because I think they bring an element of distrust into the relationship.”
   
Because individual situations vary, consultation with an attorney and/or a financial adviser may help a couple think through and make financial decisions. But the most important thing is to be open and honest, said Ann Rice.
   
“We trusted each other and had an understanding about financial matters,” she said. “That was extremely important in getting our marriage off to a good start.”