A prenuptial agreement is an increasingly common part of marriage preparation in modern times. Although Phoenix estate planning may be one of the last things on your mind as you plan on getting married, it still needs to be taken into consideration in your prenuptial agreement. A properly planned out pre-nup can have several Phoenix estate planning benefits including tax benefits, so it is worth the time and consideration to consider estate planning when drafting the agreement.

Using pre-nups for Phoenix estate planning strategies

Arizona is one of nine community property states that distribute acquired assets between marital partners in a 50/50 split after one partner’s death barring a few exceptions. The surviving partner will usually receive 50% of the jointly acquired marital property after one partner’s death unless an exception is made. A prenuptial agreement can be used to change this percentage to a higher or lower amount based on your unique needs.

Pre-nups can be used to waive community property rights

There are many cases where a pre-nup can be useful for Phoenix estate planning, because they can be used to waive Arizona community property marital rights. By waiving marital rights it does not mean that one spouse is being denied their rights, but by doing so a different Phoenix estate planning strategy can be used for each couple’s unique situation.

Some examples where a pre-nup may be useful

For example, as a part of a couple’s Phoenix estate planning strategy they may want to leave their children with the majority of the jointly acquired wealth during the marriage when one of the partners passes. Therefore in this situation a pre-nup can be used to waive the community property rights so that a share of the 50% that would normally go to the other partner can go to the child or children instead. In other cases, one person may own a family business that started prior to the marriage and would prefer to leave a percentage of their business assets to other family members.

Consult with a Phoenix estate planning professional for pre-nup advice

Pre-nups can be helpful for coming up with a unique Phoenix estate planning strategy that benefits a couple the most. With each situation being unique, the best thing to do is to speak with a Phoenix estate planning to find out what needs to be included in the agreement.

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If you are not sure as to what legal document you currently have contact one of our professionals to help you with your planning needs. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.

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