Text Box: One Gateway Center - 9 South Pittsburgh, PA 15222 Text Box: Law Firm of Martin J. Hagan LLC Text Box: the children of the first marriage at their parent’s death. The insured parent would usually make gifts to pay the policy premiums, and the proceeds will pass at death free of any estate taxes. In addition to wills and trust agreements, it may also be necessary for the couple to sign a contract not to revoke or change their wills. This will ensure that their mutual intentions regarding the distribution of their property to each other and to their children will be carried out. To make these planning ideas effective, the spouses should not own too much in joint names. Joint property will not pass under the first spouse’s will or trust and may thus violate that spouse’s intentions. Text Box: Patchwork families present unique estate planning issues. When one or both parents have children from a prior marriage, a fair, tax-wise distribution of their property at death often requires specialized planning. With a couple who have a younger child from the new marriage in addition to having older children from prior marriages, special planning is also needed to recognize that the younger children will have greater financial needs than the older children. A well-drafted trust can prioritize between the needs of the younger and older children until the younger ones reach maturity. Life insurance can play an important role in addressing these issues, while at the same time reducing estate taxes. An irrevocable trust funded with life insurance can guarantee that a set amount will pass directly to Text Box: ESTATE PLANNING FOR “HIS, HER AND THEIR” CHILDREN Text Box: 412-433-9996 412-433-9980 Fax Email: mhagan@haganlaw.net Webpage: www.haganlaw.net Text Box:

DISCLAIMER

 

This newsletter is intended for informational purposes only, and is not intended to be used nor should it be relied on as legal advice.

DISCLAIMER

Martin J. Hagan is licensed to practice law in the Commonwealth of Pennsylvania. This website is intended solely for informational use and is not intended to solicit clients. Likewise, any information contained in or obtained from this web site is for informational purposes only and is not intended to be used as legal advice.

IRS CIRCULAR 230 DISCLAIMER:   Pursuant to Treasury guidelines, any tax advice contained in this website (or any link from it) does not constitute a formal opinion. Accordingly, any tax advice contained in this website (or any link from it) is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be asserted by the Internal Revenue Service. You should seek advice based on your particular circumstances from an independent tax advisor.

Send mail to mhagan@haganlaw.net  with questions or comments about this web site.
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Last Updated: 06/29/07