Blended Families and Estate Planning: Avoiding Conflict Between Spouses and Children
Blended families are becoming more and more prevalent in today’s society. This type of family involves one or two people who are remarried with children from previous relationships. Although blended families offer many new possibilities and relationships, they can face some difficulties when planning for their estate distribution. Proper estate planning is necessary to avoid any disputes between a surviving partner and your children from a previous relationship.
Why blended families create issues for estate planning
In conventional estate planning, the assets usually go to the surviving spouse and then their children. Yet such an inheritance scheme might have some consequences that were not expected for blended families. For instance, leaving all the assets to the new spouse might result in them passing the assets to their own children, thus cutting off your children from a previous marriage or relationship.
Another problem with such an inheritance scheme lies in state intestate laws that divide assets between spouses and children. Such laws are used for individuals who died without a will. They do not always represent the wishes of the deceased.
Key legal considerations
One of the best options for blended families is to develop an estate plan that uses a trust. This kind of estate plan includes the use of a qualified terminable interest property (QTIP) trust. Thus, you can provide for your surviving spouse with some income or other kinds of assistance throughout their life and then give the rest of the wealth to your children.
Secondly, the use of a revocable living trust should be considered. The advantage of this type of estate plan is the opportunity to make specific rules concerning the distribution of your property. In this way, you can eliminate any misunderstandings related to the division of your property.
The third important point to consider is that you should pay attention to your beneficiary designations. Retirement plans and insurance policies pass outside of the will and cannot be modified through the document. Therefore, if you remarry, you need to change your beneficiary designations.
In addition, you may want to discuss your decisions with the members of your family. The fact is that your estate plan can provide all information about your decisions regarding the division of your property. However, communication can minimize the number of unpleasant surprises for your children and your new family.
Finally, the appointment of a trustee or executor should be considered. It seems that in the case of blended families, the designation of one of your children or even your spouse as a person responsible for the management of your estate can cause additional problems.
Talk to a Virginia Beach, VA, Elder Law Attorney Today
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who want to create or change an estate plan. Call our Virginia Beach estate planning lawyer today to schedule an appointment, and we can begin discussing your next steps right away.