Estate Planning for Blended Families

What to Consider When Estate Planning with Blended Family

There are pros and cons to all of the options, and there is no right answer for every family dynamic. By leaving the surviving spouse in complete control of the couple’s assets, he or she will likely have enough money and property to live comfortably for the rest of their lifetime. This can be especially important if the couple does not possess large amounts of wealth, where a forced payout to the step-children after the death of the first spouse could cause a catastrophic financial situation for the survivor. On the other hand, leaving the survivor in complete control lowers the chance that the step-children will ultimately receive an inheritance—whether due to the survivor spending down the majority of the family wealth naturally or, if the survivor does not have any restrictions on changing his or her estate plan, due to the survivor disinheriting the step-children in a revised estate plan. Many families worry about the surviving spouse meeting a new boyfriend or girlfriend love interest, who swindles them into disinheriting and ignoring their former spouse’s children.

On the other hand, leaving the survivor in complete control of the family wealth can give the children a reason to care for, keep in contact, and maintain a genuine relationship with the survivor, who may otherwise be forgotten if the children have already received their inheritance. However, if the children already have an antagonistic, dysfunctional relationship with their step-parent, giving the surviving spouse complete control of the assets could also cause family strife, bitterness, and cause greater emotional harm. Sometimes forcing a payout of the step-children’s inheritances after the first spouse dies can create some necessary family peace in a pre-existing, high-tension scenario. Each family should consider their unique emotional and financial dynamics, to make the decision that best reflects the couples’ true wishes.