How Blended Families Can Avoid Common Estate Planning Mistakes

Estate planning is always tricky in any family, but it becomes even more so when yours is a blended family. When folks marry, they often bring children from a previous marriage with them into the relationship. There are assumptions about how things will be handled when it comes to inheritances and decision-making that often create disputes. 

Why blended families often need special planning 

With a traditional estate plan, property is usually passed directly to the surviving spouse, with the understanding that afterward, their children will inherit the estate. However, in a blended family, this is not necessarily the case. A spouse may inherit everything, only to decide to leave property to their own children, intentionally or unintentionally excluding stepchildren in the process.

However, in Virginia, the instructions in a will or trust are usually followed to the letter. Yet in situations where the terms of the will or trust are unclear or were written several years ago, the outcome can be unexpected for all concerned.

Common mistake #1: Relying only on a will

One of the most common pitfalls in blended families is holding everything in a simple will. While everything left outright to a spouse might seem fair, there is no protection for children from previous marriages. Should the spouse remarry, become disabled, or change their own will, pre-existing children can be cut out.

Often, trusts are a more viable option. With a trust, financial support for the spouse and protection of assets for children from a previous marriage can be achieved.

Common mistake #2: Failing to update beneficiary designations 

Financial accounts, life insurance contracts, and payable on death accounts are passed through beneficiary designation, not a will. Many people fail to make beneficiary designations after remarriage. What happens is that a former spouse can still be named beneficiary, while others can avoid the estate plan completely.

It is essential to review beneficiary designation on a regular basis, and even more so after marriage, divorce, or when other children are born.

Common mistake #3: Not addressing family tensions

In blended families, there may be complicated interactions. Failure to account for such facts may result in further complications after death. For an estate plan to be successful in avoiding conflicts after death, it may be important to account for possible disagreements and provide clear instructions to avoid confusion. Also important is openness when creating the plan to avoid resentment.

Protecting both spouses and children

To protect everyone, you’ll need to consider several different factors. You can protect a spouse left behind financially and incorporate plans for children from previous marriages. The use of trusts, prenuptial or postnuptial agreements, and well-written last wills are a big part of being able to do this. 

Talk to a Virginia Beach, VA, Estates and Trusts Attorney Today 

The Law Office of Angela N. Manz represents the interests of Virginia residents who are looking to establish or update their estate plan. Call our Virginia Beach estate planning lawyer today to schedule an appointment, and we can begin discussing your next steps right away.