Second Spouses: Passing It On

Because of divorce or death, almost half of all marriages are second marriages—and new mates usually enjoy the same inheritance rights as first spouses. Here’s a brief roundup of the rules that govern where the money goes.

Twenty-five percent of adults with liquid assets of more than $500,000 don’t have a will, according to PNC Wealth Management. The ramifications of dying intestate vary. In 16 states the surviving spouse claims the entire estate. In many others the spouse and kids split it 50-50.

There’s still no way to disinherit a surviving spouse, as many people are surprised to learn. In most states the spouse is entitled to a third or half of the estate as the “elective share.”

This is the only way a spouse can waive an elective share. But courts frown on pacts where it appears one spouse bullied the other. “If the wedding invitations have gone out, it’s too late for a prenup,” says Seattle lawyer George Holzapfel.

Trusts control the flow of money to the various heirs. Many parents opt for a “Q-Tip” trust, which pays income to the surviving spouse; the assets in the trust then pass to the children when the spouse dies.