When planning for the future, I always like to look at the big picture before honing in on the details. Do you like to do that, too?
My husband and I recently updated our will, which we do periodically, and I started to think about some of the things your will cannot affect.
For instance, do you and your husband have a prenuptial agreement? My husband and I do not have one, but do you? If you do, here’s something you should consider.
It recently came to my attention at a continuing education event I attended, that because a prenuptial agreement is a contract between two parties, its provisions actually supersede what is stated in your will.
So, let’s say Mary and John had a prenuptial agreement stating that upon John’s death, 25% of his assets would go to Mary and the remaining 75% of his assets would be split between his three children Brian, Connor, and Melinda.
After ten years of marriage, Mary and John decide to update their will and John decides he wants to leave Mary with half of his estate and split the remaining half between his three children. So, John and Mary update their will, thinking that this will honor their new wishes.
However, the provisions in the prenuptial agreement will actually supersede the will. What John and Mary need to do to change this is have a post-nuptial agreement set up amending the provisions of their pre-nuptial agreement.
Is that a surprise to you? So, what other things do you need to think about that may not be covered in a will?
Look for that in an upcoming Total Control Money and Tax Tip. And if you want to discuss your situation in more detail, please give us a call and set up an appointment to discuss it.