In a previous article we outlined the reasons why federal workers need an estate plan. Now it’s time to explore all the reasons why estate planning is even more important for second marriages — especially when you have kids with your first and current spouses.
Updating Your Will & Other Estate-Planning Documents
Since many couples are older when they remarry, you or your current spouse may have previously created estate-planning documents. These may include a Last Will & Testament or a Power of Attorney naming an ex-spouse.
When you remarry, it’s crucial to update your Will and any other documents as soon as possible. Otherwise an ex-spouse may take control of your estate. Usually, creating new documents will automatically revoke previous documents. However, when it comes to creating a new Will, it’s important to include language that expressly revokes all prior Wills.
“When you attempt a do-it-yourself estate plan using boiler-plate documents you find online, you run the risk of accidentally disinheriting kids and grandkids from a previous marriage.”
Updating Beneficiaries
When you’re first hired, you’re asked to designate a beneficiary for your Thrift Savings Plan (TSP) and other benefits should you pass away. If your ex-spouse remains the beneficiary on any of the benefits listed below, your current spouse is left out in the cold, even if you have a Will. That’s right — beneficiary designations always override a Will, a Trust and even a pre-nuptial agreement. As a FERS participant, your designated beneficiary is paid a death benefit for:
- Lump sum payments from CSRS or FERS
- Unpaid compensation including any unpaid annual leave
- Thrift Savings Plan (TSP)
- Federal Employee’s Group Life Insurance (FEGLI)
Another thing to remember: if one of your beneficiaries predeceases you, you need to designate a new beneficiary immediately.
Research The Laws Of Your State
If you assume you don’t need an estate plan because your current spouse will inherit everything, you’re absolutely wrong. The laws of the state where you reside determine whether or not a surviving spouse inherits 100% of their deceased spouse’s assets. Probate laws can differ from state to state or change from year to year.
Don’t Accidentally Disinherit Loved Ones – Work With Professionals
When you attempt a do-it-yourself estate plan using boiler-plate documents you find online, you run the risk of accidentally disinheriting kids and grandkids from a previous marriage. And when it comes to step children, they may not have a legal right to any portion of your estate unless you specifically provide for them in your Will. An FRC® trained advisor can put you in touch with an experienced estate attorney who knows the laws of your home state.
