Frequently Asked Questions About Estate Planning Blended Families
Blended families often involve spouses in the second or third marriage with “his, her, and our” children. Without proper estate planning, state laws may distribute your assets in ways that don’t reflect your wishes, potentially causing conflict among family members. For example, without a written plan the children of the surviving spouse could receive everything and the children of the deceased spouse could receive nothing. A carefully thought-out plan may ensure your intentions are honored and minimize disputes.
• Default inheritance laws (intestate succession) might result in the second spouse’s children getting everything to the exclusion of the first spouse’s children.
• Stepchildren are not considered heirs unless specifically included in legal documents.
• The surviving spouse may have discretion over assets, potentially excluding children from a previous relationship. Why? Because stepchildren commonly do not stay in . touch with the step-parent.
• Family disagreements and legal disputes can arise.
• Create a revocable living trust to specify how and when assets will be distributed to your children.
• Use beneficiary designations on life insurance, retirement accounts, and payable-on-death accounts.
• Consider leaving certain assets directly to the surviving spouse “in trust.” This method can ensure that the surviving spouse doesn’t change who gets what after the second death, especially as it relates to the deceased spouse’s children.
• Consider leaving certain assets directly to the children, rather than to a surviving spouse, to ensure they are protected.
Yes, a trust can help balance the needs of a surviving spouse and children. Common options include:
• QTIP (Qualified Terminable Interest Property) Trust: Provides income for the spouse while preserving principal for children.
• Family Trust (Bypass Trust): Divides assets between the spouse and children.
• Irrevocable Life Insurance Trust (ILIT): Provides liquidity for heirs while keeping insurance proceeds outside the taxable estate.
• Clear communication: Discuss your estate plan with your spouse and children to set expectations.
• Separate property agreements: Use prenuptial or postnuptial agreements to specify how assets will be divided.
• Independent trustee: Appoint a neutral trustee to manage assets and reduce potential disputes.
No, stepchildren are not automatically included under intestate succession laws. You must explicitly include stepchildren in your will or trust if you want them to inherit.
Life insurance can provide financial security and flexibility:
• For the spouse: A life insurance policy can provide income without depleting assets intended for children.
• For children: Proceeds can ensure a fair inheritance if assets are left to the spouse.
It depends on your plan:
• A will: The surviving spouse may have legal rights (e.g., elective share) that override your will.
• A trust: A properly structured trust can prevent changes and protect assets for your children.
In Florida and many other states, a surviving spouse can claim an elective share of the estate, even if the will or trust excludes them. This is typically a percentage of the estate (e.g., 30% in Florida). Estate plans must account for this to avoid unintended consequences.
• Work with an state planning attorney that specializes in helping blended families.
• Use legally binding documents, such as wills, trusts, and powers of attorney.
• Keep your plan updated as family circumstances change (e.g., marriage, divorce, births).
Using a revocable living trust instead of a will keeps your estate plan private, as trusts do not go through probate, which is a public process.
Review your estate plan:
• Every 3–5 years.
• After major life events, such as marriage, divorce, birth, or death in the family.