Navigating Estate Planning for Blended Families:
Estate Planning For Blended Families
The family dynamics in our modern society are constantly evolving. The nuclear family structure has for several years been challenged, due to various circumstances impacting on the family structure such as divorce, death of a spouse and remarriage in some instances.
A blended family or step family may then be formed when two people with a child or children from previous relationships come to together as a couple or remarry and create a new family unit together.
The blended family structure can present a host of new opportunities for harmony, cohesion and new relationships. In some cases, this structure allows for greater emotional and financial support for family members. This structure also has the advantage of two parents serving as caregivers for the children of the new family unit and allows persons to embrace diversity at all levels.
On the other hand, this family structure may come with its own unique challenges, including differences in parenting styles, values and habits. It is therefore critical that family members as a whole work together to integrate their unique practices as they make this new adjustment.
Because of the dynamics of the blended family, it becomes crucial for spouses to plan their estate in a way that ensures their wishes are honoured and that as best as possible, they keep their family out of any potential conflicts.
Considerations For Blended Families
If you are part of a blended family structure, here are some key considerations to take into account when planning your future and the future of your loved ones.
Have Conversations With All Parties Involved
Before planning your estate, you will first want to discuss with your spouse, all of the options available and how you would want your loved ones to be properly taken care of. In some cases where the former spouse is alive and plays a role in your children’s lives, it will also be important that you engage in conversations with him or her as well where appropriate.
2. Update Any Previous Estate Plans
For those spouses who already have an estate plan in place, it will be important to revisit this plan and to make any necessary adjustments as needed to protect the interests of your loved ones, including your new spouse and your children and stepchildren. What may have been appropriate in the past may not be in alignment with your current wishes given the new family unit that you are now a part of.
3. Legal Planning For Your Future
Creating a Last Will & Testament may be a critical step in legally documenting your wishes after your death. You can outline how you would wish to pass on your assets according to each person’s needs, appoint legal guardians for children and nominate an executor or trustee to manage your estate.
4. Consider Whether Lifetime Transfers May Be Appropriate
You may also consider whether you may want to transfer some of your assets to your spouse during your lifetime. This may be done with the understanding that your children would be accounted for in the event of your death. In some instances, it may be appropriate to transfer assets to children of the previous or current marriage while you are alive. It will be important to have lengthy discussions about what are the best options based on your particular goals.
5. Consider Marriage Agreements
Another consideration for newly married couples may be putting a pre-nuptial agreement in place that would outline the rights and obligations of the spouses in the event of divorce or in the event of death of either spouse. The pre-nuptial agreement will predetermine the distribution of assets of the parties to the marriage as well as provide details on how children will be provided for.
What Happens If No Planning Is Put In Place?
Where no legal planning is put in place, then your estate would pass according to the rules of intestacy. You can read more about the details of intestacy succession as outlined in this article here. By failing to put legal planning in place, you may end up unintentionally leaving some family members without an inheritance if they have not been specifically accounted for. Additionally, if you have not updated any previous will or made adjustments affecting your property, then your new family unit may end up being disadvantaged.
Each family will have its own unique dynamics and circumstances. This means that your estate planning should be done in a way that caters to the needs of all family members involved. You should carefully consider the options available to you to identify the best plan to provide for the future of your loved ones after your death.
Questions?
Interested in learning more about how you can legally protect your loved ones and their future? To learn more about what options may be available to your family, you can reach out to us to discuss your particular needs by clicking here.
