How to Estate Plan With Blended Families
Developing an estate plan with blended families is essential for maintaining any kind of control over the distribution of assets upon your death. With the rise in divorce and remarriage, blended families can regularly extend to as many as three and four marriages.
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Instructions
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Enter into a blended family with a prenuptial agreement. If you're already married, get a postnuptial agreement about the distribution of finances and properties upon your death or dissolution of marriage.
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Determine the rights your new spouse will have over your estate. Consider if you want your new spouse to have any part of your estate, or if it will all go exclusively to your children upon your death.
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Designate a trustee to manage the affairs of your estate upon your death. If your new spouse is not to be your trustee, this must be clearly defined in your estate plan.
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Remove any possibility for the new spouse in a blended family to change the beneficiaries and disinherit your children after your death. Define what portion, if any, goes to the new spouse and what goes to your children. If you choose to include any of the new spouse's children, this must be clearly stated.
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Identify specific assets that you want to go to your children and spouse. These may include personal effects, vehicles, your house and jewelry.
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Make the proper arrangements for the proceeds of your retirement account and 401(k) plan. This may include setting up a trust that will give support to your surviving spouse until death. At the time of your spouse's death, all assets or proceeds can be distributed to your children.
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Request the services of an attorney familiar with the implementation of a blended-family estate plan in your state.
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Talk to a financial planner about the use of trusts in your estate planning. To make sure the trust is managed according to your wishes, choose a trustee carefully and provide specific details of distribution of the trust upon your death.
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Tips & Warnings
Don't rely on the surviving spouse in a blended family to include your biological children in the division of assets. Only a properly designed estate plan will ensure your children's rights as beneficiaries.
Check with your state for laws concerning the rights of spouses in the event there is no estate planning. Be sure to address any issues of concern as you develop an estate plan for blended families.
