-- Prenups are no longer just for celebrities; they have become increasingly used in ordinary couples’ lives. However, their impact on probate makes matters increasingly complex, revealed probate attorney Bobby Sawyer of Johannesmeyer & Sawyer, PLLC.
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With prenuptial agreements now part and parcel of married life, there has also been an upturn in the number of probate litigations arising in probate court.
Sawyer explained that a premarital agreement is a contract between two people before marriage that sets out how property will be divided in the event of a split in the relationship or divorce.
The prenup is only legitimate if it is entered into voluntarily by both parties, there is full disclosure in terms of assets, income, and debts, and both parties are over 18 years of age and of sound mind.
The attorney emphasized that any premarital agreement must be fair, and any modifications can be made through a written agreement to amend or revoke the original agreement. This contract must be signed by both parties and clearly state the changes made compared to the original agreement.
A survey in 2022 revealed that premarital agreements rose to 15% compared to 3% in 2010. This increase has led to more premarital agreements being litigated in probate court after one party dies.
He said that a premarital agreement can result in a surviving spouse waiving their right to serve as administrator or executor of their spouse’s estate or waiving their right to inherit, in whole or in part, from their spouse’s estate.
“A premarital agreement can result in the surviving spouse not receiving any or only a portion of their partner’s inheritance,” he explained.
However, probate litigation usually arises when prenup agreements conflict with wills and trusts. For example, in Northern Trust v. Shaw, a surviving spouse sued her husband’s trust estate, seeking $1 million—since both the couple’s prenuptial agreement and his estate plan each entitled her to a $500,000 payout.
While one court awarded her $1 million, an appellate court reversed that decision, finding that the obligations of each agreement had already been satisfied under the relevant intestate law, giving the spouse only a $500,000 payout.
Sawyer warned that similar issues between a premarital agreement and a will are likely to lead to litigation. In such cases, a party may seek to demonstrate that the decedent’s intent was reflected in one document and not the other.
The attorney urged couples considering a prenup agreement to also seek guidance from an experienced probate attorney to ensure that no problems arise due to unforeseen circumstances if either party dies.
“A prenuptial agreement should ideally be considered in alignment with an estate plan, but seeking legal guidance is essential to prevent future litigation,” sawyer concluded.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Bobby Sawyer
Email: Send Email
Organization: Johannesmeyer & Sawyer, PLLC
Address: 300 E Lombard St, Baltimore, MD 21202, United States
Phone: (443) 998-8855
Website: https://www.jandspllc.com/
Release ID: 89162020
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