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My second wife says her 2 children should inherit our estate, but I also have 2 children. Is that fair?

    “I will leave the inheritance of $ 1 million that I have received from my parents from my biological daughters.” (Photo topics are models.) – Getty Images/Istockphoto

    I have been married to my second wife for 10 years. I will leave the $ 1 million inheritance that I have received from my parents from my biological daughters. All the other first goes to my wife or, if she is not around, is immediately divided between my stepkids and my biological children.

    My wife said that if I die for her, she plans to leave everything – our remaining estate – to her two children who are my stepchildren. She claims that my biological children have already received a large piece that I pass on to them of my deceased parents. Is this fair?

    The second husband

    Related: “My house and car are being paid off”: I have $ 1 million in shares – so where do I invest $ 100,000?

    How your community property is divided depends on who will first die, unless you both agree to write a trust agreement.
    How your community property is divided depends on who will first die, unless you both agree to write a trust agreement. – Marketwatch -Ilustration

    Your legacy, your choice.

    Your community property, the surviving husband.

    The legacy of a spouse is considered separate property. So it is fair to leave it to your own biological children, if that is what you want to do. Community or marital property, acquired during a marriage, goes to the surviving husband. They can do what they want with it. Your wife has made her plans clear. However, if she dies before you do that, her children can have a problem because you are planning to split the estate four ways, reducing the legacy of your stepkids.

    So how your community property is divided depends on who will first die – unless you naturally come to an agreement and decide to write a trust agreement. A qualified ordered interest rate real estate, or a QTIP trust, is not unusual in second marriages. AB confidence is another option: the “A” Trust is revocable and has the surviving spouse, while the “B” confidence is irrevocable and possesses the assets of the deceased husband.

    For assets that do not go into confidence, you can call your children as beneficiaries or make transfer-on-killing. However, you must avoid placing their names directly on the actions to ensure that they can take advantage of the step in the basis, including only pay capital gain tax on the basis of the fair market value of the active in the event of your death, rather than on the basis of the original purchase price. A consultant will help you structure your trust or trusts. You can also use life insurance policy as a way to leave your children an inheritance.