***As Temps Rise, Nuclear Families Take a Dive

As Temps Rise, Nuclear Families Take a Dive –

Estate Planning for Unconventional Families Has Never Been More Important

Among the many articles covering the blazing heat wreaking havoc on my beloved DC metro area as well as much of the U.S., was an interesting piece in a recent edition of The Washington Post on nuclear families. According to the article, new census figures show that marriage rates across the nation have plunged, while the number of unmarried partners with children has soared.

Too Hot to Handle

Traditional families face their own host of challenges when it comes to estate planning. But, with fewer people embracing the status quo, a new generation of “unconventional” families has evolved in which case the scenarios are endless and the challenges are greater than ever before.

For example…

- If one or both of your parents remarry…What if your mother’s estate wound up in the hands of your stepbrother even though they were intended for you?

- If you’ve long been divorced from your ex…How would you like your ex to inherit your property, your bank accounts and your retirement benefits despite the fact you willed them to your children?

- If you’re gay, but not legally married…Would you like your assets to end up in the hands of your intolerant family members?

- If you were to become physically or mentally unable to care for yourself…Would you trust your estranged sibling to make medical and financial decisions on your behalf?

These are just a handful of the messy scenarios that can occur within unconventional families.

Beat The Heat: Be Prepared!

The only way to protect yourself, your estate and your loved ones from the costly and potentially disastrous effects of the unexpected is to be prepared.

While there’s never a one-size-fits-all solution, when it comes to unconventional families, the need for customized estate planning documents and strategies is even more crucial. You may think, “Well, if I just have a will in place, I’m covered.” This is one of the most dangerous, yet most common, misconceptions I encounter.

Keep in mind the many other considerations:

WILL REVIEW / UPATING

- Divorcing does NOT magically disinherit an ex from your assets. Without proper legal planning, your ex-spouse (as surviving parent/guardian) would likely be appointed by the probate court to manage the inheritance you leave to your children. Your estate plan should be reviewed every four years or after any major life change (i.e. death of a family member, divorce, moving, etc.)

FINANCIAL ACCOUNT OVERHAUL

- Have a retirement account? Failing to properly remove your ex (or any other beneficiary) from your retirement – or other financial accounts – can actually supersede your will and even state laws.
Having an estate planner who is well versed in financial planning and willing to work with your financial advisors is key.

PRE-MARITAL AGREEMENTS

- In the absence of a Pre-Marital Agreement to maintain separate assets, if you predecease your new spouse, then you may forever disinherit your own children. Thereafter, upon the death of your new spouse, your assets may be inherited by your step children, or even by your new spouse’s next spouse and their children.

TRUSTS

- In addition to their many tax benefits, trusts ensure that, upon your passing, your estate is controlled by a party of your own selection (someone you trust) to safeguard its use strictly for your intended beneficiaries. They can also protect an inheritance from potential squandering, divorces, lawsuits and bankruptcies through Spendthrift Provisions.

The Bottom Line

Just like we can’t prevent a heat wave, nor can we divert all of life’s changes. The reality is that people get divorced, relationships sour…things happen. If you’re like the millions of other Americans living in a non-traditional family, it’s imperative that you invest in a comprehensive estate plan.

Gary Altman, Esq. is founder of the DC Metro-area estate planning law firm, Altman & Associates, and the former President of the Financial Planning Association of the National Capital Area. He has been honored as a “Top 100 Attorney” in the country by Worth Magazine and has been recognized by Washingtonian Magazine as among the DC region’s “Best Estate Planners”. He can be reached on 301-468-3220 or via email at gary@altmanassoicates.net. To learn more, visit www.altmanassociates.net.

Copyright © 2011 by Gary Altman, Esq. All Rights Reserved.