The Next Wife

22 Dec 2023 · 1 min

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In this brief personal‑finance segment, the speaker warns women that if they die before their husband and the surviving spouse later remarries, the new spouse could jeopardize the children’s inheritance. She advises that, either in a will or a lifetime trust, a provision should be made to create a protected trust at the woman’s death. The trust would be funded with the proceeds of a life‑insurance policy that names the trust as the primary beneficiary. The trust would hold the money and distribute it to the children at predetermined ages or milestones. The speaker notes that the investment income generated by the trust can be directed either to the surviving spouse or retained for the children, ensuring the intended inheritance regardless of the spouse’s future remarriage.

Chapters

Your husband's next wife could ruin your inheritance plans if you were to die first, ladies. Here's what you can do about it. Write this down. Either in your will or a trust created during your lifetime, state that at your death, a protected trust will be created for your kids. Into this trust will go life insurance policy proceeds from a policy you took out that names the trust as the primary beneficiary. That trust will hold that money and pay it out to your children at various stages during their lifetime. The income from the investment of that money can either go to your surviving spouse or be kept into the trust for your kids. This will ensure that your kids will receive the inheritance you want them to receive regardless of what happens to your surviving spouse down the road.