Blended families, a group that’s growing every year, face special challenges when it comes to estate planning. In addition to one or more former spouses, blended families may include stepchildren, shared real estate, and property and assets from before and after a new marriage. If you don’t plan carefully, you could accidentally disinherit a child or create unnecessary stress and family discord when you die.

About Stange Law Firm

At Stange Law Firm, we care about you and your family. We understand that there are many complex legal and financial decisions that you have to make, and we are here to help. Our experienced estate planning attorneys can assist you with everything from trusts and estate planning to custody agreements and blended-family planning. 

We can work with you to protect your loved ones and ensure that your legacy is secure. We provide sound, common-sense advice, along with clear legal options, to ensure your wishes are carried out and your family’s future is protected.

Why Blended Families Need Estate Planning

In a marriage, a person might assume that their assets will pass to their spouse and children upon their death. Blended families typically possess separate assets that exist alongside varying financial standings and responsibilities, such as existing child support or alimony commitments, and jointly owned property from former marriages. If you don’t have a plan in place, your state’s intestacy laws could divide your assets in ways you would likely never choose or even imagine. 

In many cases, intestacy laws leave a surviving spouse and biological children to divide the estate. This may leave your spouse with an insufficient inheritance to maintain their standard of living or your biological children feeling like they’re being forced into the background. In most cases, stepchildren are also disinherited, unless you explicitly name them in your will. Having an estate plan puts your wishes first, rather than your state’s default laws.

Providing for All Parties Involved

Approximately 6% of children lived in homes with at least one stepparent in 2022. In contrast, 27% of children lived with only one parent, 4% did not live with either parent, and 65% of children lived with two biological or adoptive parents.

Striking a balance between providing for a surviving spouse and wanting to leave something to your children is one of the most delicate topics in blended families. A Qualified Terminable Interest Property trust (QTIP) or a comparable marital trust is a popular tool. Using this arrangement:

  • During their lifetime, your spouse receives income or has access to specific assets.
  • Your designated beneficiaries, typically your biological children, will inherit the remaining assets upon their death.

This arrangement relieves your spouse of the responsibility of determining how to divide your assets after your death and avoids unintentional disinheritance. The family home may also be subject to lifetime use agreements. You can let your spouse stay there, but make sure your kids eventually inherit the property. 

Supporting Stepchildren

One common misconception about blended families is that stepchildren automatically inherit from a stepparent. They do not. A stepparent is not a legal parent of stepchildren without a stepparent adopting the child(ren) or if the stepparent does not name stepchildren in a will, trust, or other estate planning documents.

If you want to provide for stepchildren, you can do so through a will, specific bequests, trusts, life insurance, or other accounts with named beneficiaries. To avoid conflict or confusion, you should precisely outline your intentions for your stepchildren in your estate plan.

Designate Beneficiaries

Retirement accounts, life insurance policies, and bank or brokerage accounts with named beneficiaries typically will pay out directly to the named beneficiaries, outside of probate, and regardless of instructions left in a will. It is important to ensure these beneficiaries are updated whenever a child is born, a divorce or remarriage occurs, or your situation otherwise changes. 

In second and subsequent marriages, it is important to keep beneficiary designations up to date to avoid conflict between your current spouse and children from a prior marriage.

FAQs

Q: Should Blended Families Consider Prenuptial and Postnuptial Agreements?

A: Yes, prenups and postnups make property rights, inheritance expectations, and financial responsibilities clear. They secure assets brought to the marriage, define obligations to children from previous relationships, and minimize conflict. When used with wills and trusts, these agreements create an integrated estate-planning package that protects all family members and minimizes uncertainty.

Q: How Do I Provide for a Stepchild Without Disinheriting My Biological Children?

A: You can make special provisions or create a separate trust for stepchildren, reserving the bulk of the estate for biological children. Setting out amounts, assets, or rights with as much detail as possible minimizes confusion and the potential for friction. An attorney can guide you in an estate plan that meets your state’s legal requirements while maintaining fairness to all of your children and spouses for the benefit of your blended family.

Q: How Often Should I Update My Estate Plan?

A: We suggest that you review your estate plan every three to five years or upon a significant change in your family status, such as remarriage, the birth of a child, divorce, or a significant change in your assets. This will help ensure that your documents are up to date and reflect your current family situation and financial picture. It can also help prevent accidental disinheritance or disputes among other family members.

Q: How Can I Reduce Conflict When Explaining My Estate Plan to Family Members?

A: Good communication is key. Discuss your thought process, your expectations, and how the plan protects all family members while still maintaining appropriate privacy with regard to specific financial information. A mediator or your attorney can help guide these discussions and may be able to help bring everyone to a better understanding. 

This type of communication and discussion may help family members to accept your decisions and ensure that your wishes are followed.

Contact Stange Law Firm

Even if you are in a blended family or in a second marriage, you can come up with an estate plan that benefits everyone appropriately. Stange Law Firm can help you. Contact us today to speak with a representative.