Dolan Smart Money Move: After you are married, be sure to update your beneficiary information on any pension or profit-sharing plans—especially if you want the money to go to your children instead of your new spouse. Federal law says your spouse is the sole beneficiary of these plans (which probably make up a big chunk of your estate), unless he or she waives those rights in writing after you are married.

• What claim will a former spouse or children from a prior marriage have on your assets, jointly held assets, and any assets acquired during your new marriage? If you are concerned, sit down with a lawyer and discuss the issue.
• How will each of you revise your wills? Work out a new estate plan that addresses the needs of your new spouse, your children, other family members, and, if either of you is paying alimony or child support, the needs of the ex-spouse.

Dolan Smart Money Move: If you have minor children, you should consider willing your assets to them either through a trust or an annuity. Don't take a chance of willing it to them through their other parent. Even though it's legal to do that, and even though you might trust your ex-partner, think of what could happen if he or she remarries and the new spouse, who might also have children from a previous marriage, gets hold of your estate. If your children are over 18, you can name them outright as the beneficiaries of your estate.

• Do either of you have an inheritance? Are you going to share this with the new family? You could be punished for your generosity if your new spouse is paying alimony and his ex finds out about this increase in assets! If that is the case, consider putting the money into a trust. That way your new spouse can access the interest, but the principal will go to your children. Or you could ask your spouse to waive any rights to the money.
• Ditto with a business. If you run your own business, is your new spouse going to work with you as a partner or an investor? If not, you should purchase business continuation insurance.
• How will you handle your home in your will? If you have children from your first marriage, you probably want them to inherit your home ultimately, yet if your second spouse (their step-parent) survives you, he or she might want to remain in the house.

Dolan Smart Money Move: If you don't set up a trust, your home may automatically go to your surviving spouse upon your death and then to your spouse's heirs. Something called a "life estate" may be the best way to ensure that your spouse has a home for the rest of his or her life and then, once your spouse dies, your home goes to your children.

You deed the house to your children but continue to live on the property. You also become eligible for an income tax deduction for the value of the property. You can elect to spread the deduction over a period of up to six years and you pay no capital gains tax on any appreciation of the property. When your spouse dies, or if you outlive your spouse, your home goes to all of your children. The children cannot sell the house as long as your or your spouse lives there.

Legally speaking, a life estate is an efficient transfer of property. Emotionally, however, it may be a different story. You have to examine your case and consider the repercussions. Do your children get along with their stepparent? If you died and your new spouse occupied the house—possibly with his or her own children and possibly with a new partner—would your children be furious? Tough questions, but you must think about them.

• How should your life insurance proceeds and pension be distributed? Do you want your children to get your life insurance and your spouse to get everything else? Or will the proceeds be divvied up? If you are paying alimony or child support, your life insurance could replace that money if you should die.

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