Is someone you know about to marry a person that they may not fully trust? If so, read Quentin Fottrell’s The Moneyist column, which quotes attorney Michael J. Greenberg extensively in an article on this issue. Read Michael’s suggestions about trusts and other options here:
Some key advice from Michael:
You cannot always rely on the other partner to do the right thing, especially for a second marriage. Proper planning avoids uncertainty down the line.
If you want to preserve your assets for a child from before the marriage in the event of your death, beware of “Right of Election” whereby state law requires that a minimum percentage of the estate go to the surviving spouse. Marriage may not always be the best option for your situation.
Another way to protect your child in the event of your death is to establish a trust, in which case a third party can take out a line of equity or otherwise ensure that there are liquid assets to care for the disabled child.
The Moneyist column appears daily in MarketWatch and covers the ethics and etiquette of life’s thorniest money issues.
Contact Michael Greenberg today if you’d like to discuss an issue related to a child from a prior marriage.