Blended families and asset protection.

I read recently (and make no claims to its accuracy) that the divorce rate is still around 40%. The remarriage rate is around 80%, and for people over 60, when they lose a spouse, the remarriage rate is over 90%. Based on my anecdotal observations, I think these numbers might be close to the truth.

My practice includes giving advice on children who get cut out of their mom or dad's will because everything is left to the new spouse. Sometimes the parents got it right and their respective children are fairly protected. More often than not, something goes wrong.

Without a doubt, blended families have to revisit their wills and estate planning regularly and definitely after a major change in residence, finances, death and so on.

Your lawyer, financial planner, accountant, banker and other related professionals should be talking to each other to make sure that they are all on the same page. We have many tools to achieve your goals but we need to know all of the big picture before we make suggestions.

Some simple options include using your investments and life insurance policies in lieu of a gift in a will. These options not only offer asset protection, but will save a small tax on your probate fee when the time comes.

If your lawyer is not helping you, ask yourself why not.