Why Remarriage Can Complicate Your Estate Plan

When one spouse passes away, the other eventually moves forward with life—and sometimes that includes a new marriage. While this can be a normal part of life, remarriage can unintentionally expose your assets to:

• A new spouse

• That spouse’s children

• Divorce proceedings

• Elder exploitation or financial abuse

• Elective share laws in Minnesota

Even if you and your spouse are aligned today, circumstances can shift. Aging, loneliness, or diminished capacity can lead to decisions they never would have made earlier in life. That’s why planning ahead is essential.

Using a Trust to Protect Family Assets

One of the most effective ways to safeguard your estate is to leave assets to your spouse in a trust rather than outright. This structure ensures that your spouse is cared for—while still guaranteeing the remaining assets eventually go to your children.

A properly drafted trust can:

• Allow your spouse to use the assets during their lifetime

• Prevent a future spouse from inheriting them

• Shield those assets from division in a later divorce

• Reduce the influence of outsiders

• Preserve your children’s inheritance

This is especially important in Minnesota, where a surviving spouse has certain “elective share” rights. A trust can limit how much a new spouse could claim from your estate.

How Much Control Should Your Spouse Have?

When leaving assets in trust, you can decide how “tight” or “loose” the structure should be:

Very Flexible Trust:

Your spouse can access the money freely, withdraw any amount, and use the assets as they choose.

Moderate Restrictions:

Your spouse can withdraw funds, but only after using their own assets first, and they may adjust how the remainder passes as long as it stays within your family.

Highly Restricted Trust:

Often used in blended families, the spouse receives only income or a small annual percentage (e.g., 4%). They cannot liquidate the trust or change beneficiaries.

The right choice depends on your family dynamics, your spouse’s financial habits, and the level of protection you want.

Who Should Serve as Trustee?

A well-constructed trust also needs the right trustee. You have several options:

• Your spouse alone: Works well when trust is unconditional, but offers the least protection.

• Your spouse and a child as co-trustees: Can work in some families but may create tension in others.

• A professional or corporate trustee: Offers neutrality, clear accountability, and consistency especially helpful for blended families or large estates.

Choosing the right trustee is often just as important as choosing the right trust structure.

Frequently Asked Questions

1. Can my spouse change the beneficiaries after I die?

If your spouse inherits assets outright, yes—those assets become theirs to redirect. However, if they inherit through a properly drafted trust, they may be restricted or completely prevented from changing beneficiaries.

2. Will a trust actually prevent a new spouse from inheriting?

Yes. A well-designed trust can ensure that after your spouse passes away, any remaining assets must go to your children or other beneficiaries you choose, not the new spouse.

3. What if my spouse becomes incapacitated or vulnerable?

A trust offers significant protection in situations involving cognitive decline, exploitation, or undue influence. Because assets are held in the trust—not in your spouse’s personal name—they cannot be easily taken or misused.

Author

Claire creates wills and trusts which provide security and peace of mind. She compassionately listens to her clients’ dreams, goals, and fears and then fashions plans that best meet their needs.

It is important to Claire that her clients understand different options and make decisions that are right for them. She loves to educate clients by drawing out complicated concepts.

Come visit us! Conveniently located in Rochester, Minnesota.