Estate Planning for Blended Families: How to Avoid Common Pitfalls
Blended families are more common today than ever before, and as wonderful as this is, it also brings its own set of unique challenges when it comes to estate planning. If you are part of a blended family (you are remarried and have stepchildren or children with multiple partners), then a simple will just isn’t going to cut it.
Without an estate planning strategy in place, even the best of intentions can lead to conflicts for blended families. Conflicts can be even more difficult during an emotional time. Fortunately, the right estate planning tools can help blended families avoid mistakes and develop an estate planning strategy that is fair and legal for your family situation.
Why blended families need a different approach
In a typical family structure, it is generally assumed that if someone were to own a piece of property, it would go to a spouse and then to the children. However, in a blended family, there are additional factors.
For example, if a parent gives everything to their spouse, the spouse might in turn decide to leave everything to their children if they remarry or face financial difficulties. This would leave the original parent’s children with nothing at all.
Even if the spouse’s intentions are good, there are various circumstances in life that make an estate plan necessary. Frequently, blended families require an estate plan that achieves a balance between two objectives:
- Providing for a surviving spouse
- Not excluding children from a previous relationship from inheriting
Common estate planning pitfalls in blended families
The following are recurring issues that hamper blended families:
- Failing to update older documents – People can forget to change their wills, beneficiary forms, and powers of attorney when they remarry. This has serious implications if they pass away because their estate will go to their previous spouse or there will be confusion regarding who to leave it to.
- Leaning only on a simple will – The will may not be effective at avoiding conflict, especially when there is a conflict of interest between the spouse and the children. Moreover, the will cannot control other assets such as retirement accounts or life insurance.
- Accidental disinheriting – Generally speaking, stepchildren will not inherit from a will or estate plan unless they are formally adopted or otherwise provided for in a will or estate plan. The estate plan should indicate if stepchildren are to be provided for.
- Not planning for long-term care – Substantial assets could also be spent down or become subject to rules of recovery under Medicaid if a spouse requires nursing home care in the future.
Talk to a Virginia Beach, VA, Estate Planning Attorney
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who are ready to draft or update an estate plan. Call our Virginia Beach estate planning lawyers today to schedule an appointment, and we can begin discussing your next steps right away.