Prenups and estate plans: Make sure they work together

Description

Abstract: If a prospective couple plan to sign a prenuptial agreement, it’s a good idea to design the agreement with their estate plan in mind. A well-planned prenup can provide several estate planning benefits; a poorly planned one can trigger unintended tax consequences or hinder achievement of estate planning goals. As this article discusses, benefits include protection from liability for one spouse’s separate debts and implementation of estate planning strategies. But there are traps, as well, involving premarital transfers, the estate tax exemption, and the disposition of the family home.