Your old paperwork may not say what you want
Marrying again often comes with years of earlier financial decisions. Old policies, pensions and death-in-service forms may still name your former spouse. A will made before your new marriage is usually revoked by it in England and Wales, unless it was written with the marriage in mind.
Gather every policy, pension and will and check who each would pay. That list is the starting point.
Check your divorce settlement as well. Some court orders require you to keep a policy in place for an ex-spouse or children. Cancelling it could put you in breach of the order.
The risk of children being left out
If everything passes to your new spouse, your children from a first marriage depend on your spouse to leave money to them later. If your spouse remarries or changes their will, your children may receive nothing.
A separate life policy in trust for your children ring-fences money for them. Your will can then leave the home and other assets as you choose.
Think about when your children would receive the money. Younger children may need trustees to hold it until they are older. Adult children may prefer to receive it directly, which a trust can still allow.
Protecting the new household
Your new spouse may have moved into your home, or you may have bought together. Make sure cover clears any mortgage and keeps the household going. A joint policy can work for the mortgage, while single policies give more control.
Consider your spouse's own children too. Stepchildren do not inherit under intestacy, so name them in a will or trust if you want to provide for them.
Talk openly with your new spouse about how you plan to divide things. Agreeing on the plan together avoids surprises and disputes later.
If you bought a home together, check how it is owned. As joint tenants, it passes to your spouse automatically. As tenants in common, your share passes under your will, which gives you more control over who eventually inherits it.
Inheritance tax and second marriages
Transfers to a spouse are generally free of inheritance tax, and an unused allowance may transfer to the surviving spouse. If you were widowed before, your estate may also be able to use unused allowances from your first spouse.
These rules are technical, so speak to a solicitor or tax adviser. Whole of life cover in trust can help with any bill that remains.
If your new spouse is also previously widowed, their estate may also carry unused allowances. A solicitor can explain how these interact.
How Hi Tomorrow helps people marrying again
We review your existing policies and trusts, then recommend cover from our panel that protects your new spouse and your children. We set up separate trusts where needed, and suggest a solicitor for wills.
We also help update trustees and beneficiaries on older policies where the trust allows it.
We can also look at whether your new spouse needs cover of their own, and how to make sure their policies fit with yours.