Making formal “if this/then that” finance plans (aka prenuptial contracts) in advance of marriage is not the same as estate planning, however prenup arrangements can be a helpful way to jumpstart a collaborative estate plan, which is also a good idea when it comes to having a clear and organized financial future.
Operating Together Financially
Although prenups tend to have a negative connotation, thoughtful creation of a prenuptial agreement can help a couple prepare for how they will operate financially together, which can be especially useful when debt, real estate, savings, career expectations, or children are part of the picture. Essentially, a prenuptial plan is a contractual agreement. On the other hand, a comprehensive estate plan usually involves different legal vehicles, which may include a pour-over will and trust, as well as financial powers of attorney and a health proxy. While the legal tools involved differ, prenuptial agreements and estate plans both involve commitments related to the intended use of assets, and in that regard, the creation of a prenup offers a logical jump start for estate planning: “If one spouse were to predecease the other during the marriage, what would you, as a couple, want to happen to that spouse’s assets and liabilities? Additionally, is there any financial pre-planning that should be done by either or both spouses at the outset of the marriage in order to prepare for this possibility?”
While making an estate plan is important for every married couple, doing so can be especially important for blended families, since oversights or misunderstood intentions can result in a great deal of chaos and conflict in the event of unforeseen circumstances. Moving efficiently from prenup to estate planning can also be particularly relevant if assets, like real estate, are involved:
While a prenuptial agreement is not the appropriate legal vehicle to do any robust estate planning, it can be a helpful way for intended spouses to kickstart their future estate planning. This is especially important to consider when a couple, upon their marriage, plans to move into a home that is one spouse’s solely-titled separate property.
For example, if the spouse with the separate property interest in the home were to predecease the other spouse, what would he or she want to happen to the real estate at issue? Would he or she want it to go to the other spouse? Would he or she want it to go into his or her separate estate? Or is there some hybrid approach that he or she would prefer as it pertains to the division of the real estate at issue?
Estate Plans and Estate Bonds Explained
Having an inventory of assets and clarity on intended beneficiaries is a helpful start toward estate planning. These estate planning tips will help you prepare to meet with an attorney to formalize your intentions. You’ll also need to designate someone you trust, or a professional, to serve as the fiduciary who will ultimately administer your plan. Depending on the circumstance, this fiduciary may be specifically referred to as an executor, personal representative, or trustee. Given the gravitas of their responsibilities, fiduciaries are frequently required to obtain a type of bond, referred to generally as an estate bond. The purpose of an estate bond is to guarantee that debts and assets will be properly handled in accordance with the estate plan as well as state laws and protocols.
Colonial Surety Company makes it quick and easy to obtain estate bonds of all kinds in every state. A user-friendly online service allows you to quote and obtain a bond that is instantly available to download or e-file. Fiduciaries in every state can efficiently obtain their estate bonds here:
Estate planning attorneys can help clients secure fiduciary and court bonds with a few clicks on The Partnership Account® for Attorneys. Just select the bond needed, send it to the client for payment, and then download, e-file or print the bond. Our fiduciary bonds include: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. Court bonds include: appeal, supersedeas, injunction, replevin, receiver and more.
Colonial Surety is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA. Our customers have awarded us a 4.8 Trustpilot score.Whenever and wherever you need a bond, trust Colonial: www.colonialsurety.com