Estate Planning for Blended Families: Navigating Complexities

Estate Planning for Blended Families: How to Manage it Effectively

Why consider estate planning for blended families?

Blended families have been around for as long as there have been families. In previous decades, when people typically didn’t live to a ripe old age the way we now do. Instead, it was more common for children to lose a parent or both parents to accidents and or illness.

While divorce was less common in those previous times, the remaining spouse would often remarry. Therefore, the child or children would be absorbed into the new family. In many cases if there were no subsequent marriage in the offing, other family members would step in to help. This might include grandparents, an aunt, or other relative might raise the children.  Today, divorce, not death, is among the most common cause for the increase in blended families. Death is still a factor too, but not quite as common as divorce.

Estate Planning for Blended Families Must Be Considered Since Blended Families Are Becoming The Norm

It is estimated that today more than half of all Americans have either been or will be included in a blended family during their lifetime. It can be hard to navigate the complexities of these different relationships and the death of a spouse can create even more complicated financial and emotional issues.

Creating an Estate Plan is an important key in minimizing stress in a nuclear family, and even more integral when you have blended families. In blended families, disinheritance of children is a typical issue that comes up after one spouse dies. With a well thought out, comprehensive estate plan, you can honor your surviving spouses, while also providing for all children, and other dependents.

The Right Kind Of Trust Can Help Family Avoid Stress

A comprehensive estate plan for a blended family will most typically include setting up a trust. The best way to avoid disinheritance is by placing some or all your assets and property in a trust. Establishing a trust will allow you to provide for your spouse during their lifetime. Additionally, when your spouse passes away, anything documented in the trust will be distributed to the children accordingly.

One type of trust frequently used in estate planning for blended families is a Qualified Terminable Interest Trust (QTIP).

QTIP trusts enable the grantor to look after their spouse and ensure that the assets from the trust are passed on after that spouse dies to beneficiaries of their choice. This could be children from the grantor’s first marriage, other family members, or friends.

So many emotionally charged issues come up when parents in blended families die that taking care of those problems that can be foreseen and eliminated is of great comfort to those left behind.

Taking time to engage in conversations with family members about your intentions to provide for them is always a good idea prior to setting up your estate plan. Topics of discussion include guardianship when young children are involved or those with functional needs. You want your spouse, ex-spouse, children, and stepchildren to feel they will be cared for equitably.

Engage in conversations with family members about your intentions prior to setting up an estate plan. Discuss guardianship for young children or family members with functional needs. Talk about finances, long-term goals, and other contractual obligations.  These are just a few of the most basic topics that will be covered when creating an estate plan. The important thing is not to procrastinate especially when your family is blended. Sudden illness or sudden death could throw your family into chaos if there is no plan.

Give my office a call at 404-370-0696 and let’s give you and your beautifully blended family the peace of mind that comes with knowing each one of them is loved, cared for and will be provided for in the event of your demise.

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!