A blended family, also referred to as a stepfamily, is a family in which at least one parent has children from prior to the current marriage. So what are the impacts on estate planning for blended families?
Is Estate Planning for Blended Families Any Different than for Others?
While estate planning for blended families is not necessarily different than it would be for other families, there will likely be more people you need to account for in a blended family situation. Since blended families include children from previous relationships, the process of dividing assets between the children may seem complicated.
What are Important Things to Think About in Blended Family Situations?
When creating or updating your estate plan and factoring in the children in a blended family, there are several things you will need to consider. The following list includes just some of the most significant points you will want to keep in mind:
- Division of assets
- Guardianships
- Making everyone involved aware
Division of assets
The idea of dividing up your assets amongst loved ones can seem daunting enough. However, it is key that you ensure your assets will be passed on to the appropriate parties, keeping in mind both the children from your prior relationship as well as those in your current marriage.
Guardianships
Choosing guardians for children is a critical aspect of estate planning – especially in blended families. Ultimately, you will want to choose whoever you see fit as the best guardian for each child involved.
Making everyone involved aware
Another incredibly important step in the entire process is making everyone involved aware of your estate plan. You do not want a situation where you are scrambling at the end of your life to inform those who will be impacted by your plans. This can become particularly complicated in blended families, so it is in your best interest to have honest conversations with anyone that stands to inherit upon your passing.
How Do You Know Who Should Inherit What?
Deciding who should receive what assets upon your death is not always the easiest task, and can become especially difficult when factoring in a blended family. With this said, you will want to pass on any assets to whoever you feel is the most appropriate person to have them – and as stated above, make those who stand to inherit from your estate plan aware of their roles and what assets they will be inheriting.
Should You Update Your Estate Plan After Getting Re-Married?
In general – even if you do not get re-married – it is always a good idea to have your estate plan up to date. In the instance of getting re-married and forming a blended family, it is of critical importance to have your estate plan modified and/or updated to reflect any changes. When you get re-married, there will likely be certain documents that were created with your previous spouse that now need to be updated.
Blended Families: What Happens if You Don’t Have an Estate Plan
As with any other instance, not having an estate plan at all can lead to various complications upon your death. Particularly in the case of a blended family, not deciding who your assets should be distributed to may cause conflict between members of both families involved.
For any questions regarding updating your estate plan, or any other assistance with your estate planning needs, we are here to help. Contact us today to learn more about how we can work with you.
For more information regarding various estate planning and elder law topics, view our resources page, where you will be able to find previous blog articles, newsletters and our informative webinar series.
Image by OpenClipart-Vectors from Pixabay
