How to pass your assets to your spouse

28 Jul 2023 · 1 min

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1:01

In this instructional video, the speaker outlines two primary strategies for transferring assets to a surviving spouse after death. The first, the most common approach, is an outright lump‑sum transfer where all assets pass directly to the spouse via a will, trust, or joint ownership, giving the spouse unrestricted control. The second, recommended especially for those with children or blended families, involves a hybrid method: a portion of the assets is transferred outright to the spouse, while the remainder is placed in an irrevocable trust. This split approach aims to protect the assets from future risks such as the surviving spouse’s remarriage, potential divorce, or financial problems, thereby preserving wealth for the children and maintaining control over how the assets are used.

Chapters

Here's the decision you need to make. There are two ways to pass on your assets to your spouse when you die. The first way is outright lump sum, everything at once. All of your assets are immediately passed to your spouse at your death. And from that point forward, your spouse can do anything they want with those assets. That's the most common way, either through a will or a trust. Maybe everything is jointly owned. There is another way to pass on your assets that some of you should consider, especially if you have kids and especially if you're in a blended family. This second way involves giving part of your assets to your spouse outright,, and then another part of your assets would go into an irrevocable trust. The second way recognizes that no one knows what's going to happen in life, and it minimizes the risk of something happening to that money. The spouse who survives gets married again and marries someone who has a great deal of influence over them and how they spend their money. And then consider the fact that your spouse might get married and divorced and be subject to a divorce decree. There's always the chance that down the road your spouse might get involved in some kind of financial problem or even a