An important aspect of this includes drafting a prenuptial agreement. This is a document that outlines how property division will work in the event of a divorce, as well as other details that are important to the specific Arkansas couple. If you are preparing to marry, you may benefit from considering this type of contract, even if you are unsure that it is truly necessary for your specific situation.
People often believe they don’t need a prenup because they are not wealthy or they don’t have enough assets to make it worth the effort. In reality, most couples could benefit from the protections provided by this type of contract. It could be especially useful if one or both spouses are business owners, or you expect to receive a valuable inheritance at some point during your marriage. It may also provide you the opportunity to protect the financial interests of kids you have from a previous relationship.
While the most common intent of a prenuptial agreement is to determine the division of property in case of a divorce, it can also allow you to accomplish other things. For example, you may be able to use your prenup as a way to outline financial responsibilities and expectations over the course of your marriage. This could reduce the chance of disagreements over finances, but it could also reduce the potential for future complications in the event of a divorce.
One of the primary reasons to consider drafting a prenuptial agreement is that it allows you to face an uncertain future with confidence. This effort allows you the chance to have a say in what happens in case of a divorce, as well as protect individual assets that you already own or may receive in the future. An assessment of your individual financial situation may provide you with insight regarding the details that you may need in your prenup.
]]>No matter what your goals are, you may find yourself, wondering how to include your life insurance policy in your estate plan. You have other assets to pass on, and you can use the estate plan to do things like making advance medical decisions. So how do you include life insurance?
In most cases, you don’t need to put your life insurance in your will or in any other part of the estate plan. You do have the option to do so, such as if the policy is going to pay out into your estate when you pass away or if you would like it to pay out into a trust. But you don’t have to list the policy with other assets in your will, and doing so may not even matter.
When you first purchase that policy, you make a beneficiary designation. You tell the life insurance company who they should pay when you pass away. They’re going to follow this designation no matter what your will says.
For example, maybe you bought the policy as a new parent and you just named your firstborn child as the beneficiary. You may have had other children since then, and you want to include them as well. But, no matter what your will says, the life insurance company still only has to pay your firstborn as the named beneficiary. Unless, that is, you change it.
There can be some complex financial questions when making an estate plan. Take the time to carefully look into your legal options and keep things updated.
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