The divorce of a long-married couple can be particularly difficult when it comes to retirement and estate plans.
Assets, including retirement accounts, can be tricky to divide, and the presence of children can force the complete revision of existing estate plans, says a story on estateplanning.com.
The key steps to ending up with a fair and accurate division of assets are:
- Know what is yours. Separate property is stuff owned by one party before the marriage and any inheritances or gifts received by either spouse, either before aor after the marriage. But the definition of separate property can change, if, for example, an inheritance is deposited in a joint account. Marital property is any property acquired during the marriage. This can include pension plans, 401(k)s and life insurance.
- Consider trusts. A trust can ensure that second spouses cannot disinherit children from a prior marriage
- Update beneficiary forms. These can override wills.
- Keep good records. Go over your documents every few years.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
