Estate Planning Tips for Blended Families
You and your new spouse are coming into your relationship with kids from a previous marriage. As you get adjusted to the new lifestyle change, it’s also important to keep in mind how your new blended family will affect your estate planning. After all, you want to make sure that everyone feels taken care of and there are no disputes after you’re gone.
If you’re a part of a blended family, or will be soon, consider these estate planning tips.
Understand the challenges
Every blended family is different, and so are the individuals within each family. Here are a few examples of the different types of challenges your blended family could encounter.
| Scenario | Potential Challenge |
|---|---|
| You have children from a previous marriage | Your surviving spouse can change your will in the future |
| One partner brings significantly more assets to the marriage | In the event of a divorce, assets may not be separated equitably |
| You only have a traditional trust | Your trust is not designed to cover your entire blended family |
There’s no one-size-fits-all solution to estate planning for your blended family. Regardless of what you encounter, a financial advisor can help you understand your options.
Gather and review legal documents
Whenever you’re adding new members to your family, it can be important to update legal documents.
Gather important legal documents like your:
Will
Trust
Estate plan
Power of attorney
Beneficiary designation
Healthcare power of attorney
Then, review these documents to make sure they still reflect your desires given your new family situation. It may help to sit down with a financial professional to go through each document, its implications, and what changes may need to be made.
Create a pre or postnup
While they get a bad rap, a pre or post nuptial agreement can help alleviate any questions going into a new marriage, especially if one or both spouses have been married in the past. Obviously you don’t want there to be any ill will between you and your spouse, but a prenup can create clear guidelines around your shared and individual assets, along with what will happen to those assets in the case that the marriage doesn’t last.
Mediate any disputes
If estate planning becomes contentious in your family, it may help to use a mediator. A mediator is an unbiased third-party that can be used to listen to the arguments of disgruntled family members and provide a recommendation on how to handle your estate situation that is beneficial for everyone involved. Obviously, you hope that disputes don’t happen, but if they do, it’s good to know that you can enlist the help of a mediator.
Act sooner rather than later
With so many people and moving parts, estate planning for blended families can be complicated. If you work to update and solidify your estate plan now, it may help you avoid any familial disputes in the future. Make sure to communicate any changes or updates to every member of your family so they feel included. While it is your estate, it’s helpful if your family feels that your plans are fair and equitable to everyone.
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