I haven’t posted information about blended families in quite a while. The most recent data show that around 40% of married couples with children in a household have one or both spouses who brought children from a prior relationship. I wouldn’t be surprised to learn that the percentage is actually higher. Nevertheless, blended families represent a significant share of households here in the US, so that warrants addressing their unique needs when it comes to wills, trusts, and so forth.
Is your family a blended family? Second marriages with children from the first marriage and children from the second or third marriage? If that is the case, as a parent, your responsibility to protect everyone is even greater — and, frankly, a little more complicated — than in traditional families. You may have to consider former spouses, former in-laws, stepchildren, etc. Unlike a traditional family, asset distribution may not be so straightforward.
What might be included in a typical will for blended families in Cincinnati? That, of course, depends on your family’s unique circumstances, but here is a list of what might be important for you.
1 CLEAR DEFINITIONS OF WHO GETS WHAT: Your will should name names and be explicit regarding beneficiaries. This can be very important when it comes to family heirlooms or property. NOTE: AVOID UNINTENTIONAL DISINHERITANCE. Stepchildren are not automatically recognized as heirs unless legally adopted or specifically named in estate documents; hence, the will should name names.
2 PROTECT THE SURVIVING SPOUSE AND CHILDREN: Assets meant for children could be used up by the surviving spouse, or vice versa. A Qualified Terminable Interest Property (QTIP) trust gives income to the surviving spouse for life but ensures the principal goes to your children afterward.
3 SETTING UP A TRUST CAN BE A GOOD IDEA: If one or both spouses have children from previous marriages, they may want, in addition to their wills, to consider setting up a trust to provide for their children’s financial needs while also ensuring that their spouse is taken care of.
4 HANDLING THE FAMILY HOME: Depending on your situation, who gets to live in the family home or inherit the family home can be contentious. Giving the surviving spouse a “life estate”,
5 SELECTING AN EXECUTOR: This is the person who will be responsible for ensuring the will is administered according to the deceased’s wishes. When there is a blended family, it is critical that the individual is trustworthy and will be impartial.
6 PRE/POSTNUPTIAL AGREEMENTS: I know these agreements don’t get a lot of good press, but in this case, they can be beneficial in clarifying how assets will be distributed both in the event of divorce or death. It is something to consider in addition to your will.
7 KEEP YOUR ESTATE PLANNING DOCUMENTS UP-TO-DATE: A will made several years ago, before your most recent child was even born or your second marriage took place, is not helpful. You want to keep your documents up to date as your life changes. This is why I offer a complimentary review of my client’s estate plan every three years. My goal is to ensure any significant life changes, such as divorce, new additions to the family, inheritances, etc., are all accounted for in their plans.
None of us knows what tomorrow will bring, but we can account for what has happened in the past. If you don’t yet have a will or need to update it, please don’t hesitate. Protect your hard-earned assets and your family.
Call me at 513-399-7526 or visit my website https://davidlefton.com/estate-planning-for-all-stages/estate-planning-for-blended-families/. You can even schedule a consultation with me from there.