Estate Planning Concerns To Consider In A Blended Family

Estate Planning Concerns and Blended Families

There are many estate planning concerns one has to consider in life. Addressing a blended family is one such consideration.

Blended families are becoming more and more common. In fact, it is estimated that today more than 16 percent of children in the U.S. live in a blended family. A blended family can consist of a married couple with children from previous marriages or relationships, extended family members who live in the same home, families with stepchildren, or half siblings, and more.

Estate planning is slightly more complicated for blended families.

Decisions requiring agreement with ex-partners or spouses who may be hostile toward one another can be tricky. For example, an important yet tricky decision is deciding who to select as a guardian for minor children. Additionally, when multiple children are involved, there are other considerations too. It’s simply a matter of considering each person and how they will be accounted for and how assets will be divvied up.

While it is quite common in traditional families to leave all of the Estate to the other partner, the best Estate Planning option for blended families is one that takes each family relationship into account. Within blended family structures there can be concerns about inheritance size, naming an executor, and overall fairness. These concerns can bring up difficulties when making an Estate Plan, but they are important to address. Below I’ve listed some of the most common Estate Planning options for blended families.

Family Trusts:

This type of Testamentary Trust sees all assets going into a combined Trust following the death of the first spouse. The benefit to this structure is that the surviving parent can determine how to distribute assets based on each child’s needs.

Marital Trusts:

A Marital Trust allows your assets to pass to the surviving spouse, while at the same time earmarking any residual assets for the children after that spouse’s death. This structure allows both spouses to make a plan that includes all children in the family.

Outright Ownership:

This Estate Planning structure allows all assets to transfer to the surviving spouse, without a Trust for the children involved. This is a relatively simple Estate Planning structure, though each spouse will need to trust that the other will properly account for the children.

Immediate Bequests:

There is another option that doesn’t include trusts. Specifically, you can leave assets to each child within your will. This can occasionally be a sensitive topic to discuss with your spouse, but in cases where you want your child to inherit items directly it can be the best choice.

If you currently have an estate plan and have recently divorced and/or remarried and are living in a blended family, it’s time to review and update your estate plan to include new family members. If you don’t have an estate plan yet, and are living in a blended family scenario, it is time to create a plan to address the needs of all members of your family. Give my office a call at 404-370-0696.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!