Upton & Hatfield
Q: How can blended families, subsequent marriages, or complex family dynamics benefit from a more
customized estate plan?
A: Estate planning for blended families and subsequent marriages can be complicated and proper planning is important. There might be concerns about the potential for unequal treatment of children, stepchildren, and current spouses. It is important to determine your goals and create an estate plan that outlines how assets will be divided to avoid conflicts later. Communication with your new spouse or partner about finances and estate planning is essential to ensure that your goals regarding your children and your spouse or partner are met.
If you are married and have a Prenuptial Agreement, this will clarify how assets will be distributed upon death, but even with a Prenuptial Agreement, you might choose to provide for a current spouse and stepchildren in your estate plan.
An effective tool for managing the complexities associated with blended families is a trust. A joint revocable trust can be used, but there are pitfalls, including the possibility that, unless specified to the contrary, a surviving spouse can amend it after your death. An alternative might be to create a joint trust to hold marital assets and then separate individual trusts to hold separate property.
There are also a variety of irrevocable trusts that can be used depending on the intricacies of your family and financial situation. Some allow the surviving spouse to choose beneficiaries and others can provide for the deceased spouses’ children from a prior relationship.
Other methods of providing for beneficiaries include designating who the beneficiaries will be on retirement accounts, annuities, and life insurance policies. Certain bank accounts also allow you to indicate who will receive the funds upon your death, frequently known as a Payable on Death or Transfer on Death Designations.
Navigating the intricacies that come with estate planning for blended families can be complicated. With the guidance of an experienced estate planning attorney, you can create a thoughtful plan that protects your loved ones.
— Laura M. Dudziak, Associate Attorney
Estate Planning, Probate and Family Law, Upton & Hatfield
