Bronx, NY Attorney Drafts Inheritance Trusts for Second Marriages
Helping clients secure a legacy for children from a previous marriage
Blended families face many challenges, not the least of which is legacy planning. Due to New York’s intestacy laws, parents who fail to plan can inadvertently short an inheritance to their own biological children. At the Cormac McEnery Law Firm, we work closely with you to learn all about your situation, then we put the legal mechanisms in place to meet your goals. We help you understand the conflict in the law between current spouses and children from a previous marriage, and we advise you on simple, practical steps you can take to resolve that conflict for the benefit of both.
How a QTIP trust addresses inheritance concerns
Consider this scenario. John and Jane are married. It’s the second marriage for both, and each has children from a previous marriage, but they have no children from this marriage. John passes away intestate, so Jane gets the first $50,000 of his estate and 50 percent of the remainder. John’s children split the remaining 50 percent.
But what’s potentially more damaging is the property John and Jane may hold jointly, which is not part of the intestate estate. Suppose they have a joint checking account with $200,000 in it. That all passes to Jane. John bought the home where they live, but when he married Jane, he put her name on the deed. When he dies, the home passes to Jane.
Jane now has $200,000 of John’s cash, his house, $50,000 of his intestate wealth and half of his intestate estate. But when she passes away, all of that wealth goes to her children and not a penny to John’s.
The solution to this dilemma is the qualified terminal interest property trust (QTIP). When John executes a QTIP, he places the home and other assets in trust for Jane’s use during her life. The trust can include spendthrift provisions that limit the amount that Jane can spend, providing her with an income, but not allowing her to raid the principal. Then when Jane passes, the trust transfers John’s remaining wealth, including the home, to John’s children.
To learn how a QTIP trust can solve your legacy problems, contact our law firm
A qualified terminal interest property trust can provide for your current spouse and manage a bequest to your children. If you have questions about how a QTIP or other trust instrument might resolve your legacy issues, the Cormac McEnery Law Firm is available to assist. To schedule a free consultation at our Bronx, Manhattan or Brooklyn Heights office, call us at 888.368.4329 or contact us online.