If you've tied the knot again and want to leave an inheritance to your children from a previous marriage, don't overlook the importance of having a will.
People who are divorced and have a new spouse or common-law partner often have children from a previous relationship.
Without proper estate planning, people on their second marriage may end up (inadvertently) disinheriting their children!
Division of inheritance between children and second spouse
If a deceased person has a second spouse or common-law partner and dies without a will, Alberta’s Wills and Succession Act dictates how their property will be divided between the spouse and their children.
The Act provides that the deceased’s spouse or common-law partner will inherit the greater of:
- 150,000 dollars, or
- 50 percent of the net value of the estate.
The remainder of the estate – if any – will be divided between the deceased’s children.
This means that the deceased’s children may end up receiving a drastically smaller share than the second spouse, or in some cases, nothing at all.
Who will inherit the home, my spouse or my children?
A second marriage may also involve a jointly-owned home. When one spouse dies, the entire property will automatically pass to the surviving second spouse. The deceased’s intent to have his or her children inherit a share of the home could be upended.
If the home is in one spouse’s name only, there are a number of estate-planning strategies that can be used to ensure both your spouse and children receive a benefit. For example, a spousal trust can ensure your surviving spouse has the home for their lifetime, while your children will receive the home upon your spouse’s death.
Create a will that protects both your spouse and your children
If you have a second spouse or common-law partner, it is critical to have a conversation about estate planning.
Pure Legal can help you create a stress-free estate plan that ensures your wishes are carried out. Contact us today to schedule an appointment or view our estate planning price list.