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Tips for Estate Planning for Blended Families
January 15th, 2025
If you have created a blended family, you and your new spouse have probably faced some challenges or loss in the past, and chosen to build a hopeful new future together. You’re older and wiser, and you’ve learned some valuable lessons that will help your new family to thrive. One of those lessons is likely that everything goes more smoothly if you plan ahead. That includes planning for how your property will be distributed when you or your current spouse pass away. It can be hard to think about as you’re just setting out on your life together, but estate planning for blended families can help you avoid unintended consequences, both financial and personal.
Why Estate Planning for Blended Families is Critical
You probably don’t need us to tell you that relationships in blended families can be complicated. There can be tension between stepparents and stepchildren, between stepsiblings, and even between spouses. Some of that tension may just be “growing pains” as everyone adjusts to the new family configuration. Some of it may be deeper and harder to resolve. But even if your blended family gets along well and there is a strong foundation of trust, creating a new estate plan is a loving thing to do for your spouse and children. When your family needs to settle your estate, they are already going through a time of loss, grief, and stress. Without an estate plan designed for your unique family, you risk adding confusion, mistrust, and needless expense to the mix. By contrast, if you do create or update your estate plan, you offer your family clarity about how to handle your estate, peace of mind that they are honoring your wishes, and a foundation for a continued strong relationship even after you are gone.Potential Estate Planning Pitfalls for Blended Families
The old saying, “If you fail to plan, you plan to fail,” certainly applies to estate planning for blended families. Putting off estate planning can be disastrous for your spouse and children. One of the most common mistakes is leaving everything to your spouse, on the assumption that they will provide for your children after their own death. What often happens in this scenario is that the surviving spouse makes an estate plan leaving what is now their property to their own children, bypassing the children of the first spouse to die entirely. If you make no estate plan at all, Oregon law will give part of your estate to your spouse and part to your children from a previous marriage when you die. But it may not be in the proportions you intended, and your surviving loved ones may fight bitterly over what is “fair.” What if you have an estate plan prepared during your first marriage, but never updated it? Under Oregon law, any provisions in your will favoring a former spouse are revoked, treating them as if they died before you. That could lead to unintended results in which your children are provided for, but your new spouse needs to seek a “spousal share” of your estate. Your spouse is entitled to a portion of your estate under Oregon law, but the process of pursuing it could leave your children feeling that their stepparent went after “their” inheritance, leading to conflict and permanent rifts. Fortunately, the antidote to all of these potential problems (and others we haven’t mentioned) are in your hands: make an estate plan that reflects the needs of your current family configuration. But where do you start?Getting Started on Estate Planning for Your Blended Family
It’s never too soon to think about your estate plan. You can—and probably should—get started on estate planning for your blended family even before you and your new spouse get married. Even if you are young and in good health and don’t expect to need your plan for decades, having it in place will provide great peace of mind. The specifics of your estate plan will depend on the needs and circumstances of your unique family. But here are some general tips to set you on the right path.Blended Family Estate Planning Tip #1: Consider a Prenuptial Agreement.
Prenuptial agreements aren’t just for the wealthy, or those anticipating a possible divorce. In situations where one or both spouses have children from a prior relationship, a prenup can protect the inheritance rights of those children and clarify the ownership of each spouse’s assets. If one spouse owns part of a family business, for instance, a prenup can help ensure that the business is taken over by their children. If you’re already married, it’s too late for a prenuptial agreement, but you can still create a postnuptial agreement.Blended Family Estate Planning Tip #2: Update Your Will After Major Life Transitions.
This applies generally, not just to remarriage. That said, a divorce, second marriage, or the birth of a new child to you and your new spouse, should trigger you to think about updating your will. Updating your will after major life events shows your heirs that your estate planning choices are deliberate, and avoids confusion about whether your estate plan reflects what you really wanted.Blended Family Estate Planning Tip #3: Establish a Trust.
Trusts are increasingly popular estate planning tools, and for good reason. Creating a trust allows you to provide for both your spouse and children. You can arrange it so that your surviving spouse is provided for during their life, while your children are assured of their eventual inheritance. In addition, trusts avoid your estate having to go through probate.Blended Family Estate Planning Tip #4: Check Your Beneficiary Designations.
Your assets may include investment accounts, retirement plans, or life insurance policies that have beneficiary designations. It can be easy to forget about these, but assets with beneficiary designations can make up a large part of your estate. Review these designations annually to make sure that they reflect your current wishes and that none of your intended beneficiaries have predeceased you.Blended Family Estate Planning Tip #5: Consult an Experienced Estate Planning Attorney.
DIY estate planning is almost never a good idea, but it’s an especially bad one in a complex situation such as a blended family. An experienced estate planning attorney can help you clarify your needs, avoid needless pitfalls, and create a customized plan designed to achieve your goals and protect everyone who matters to you.Contact an Experienced Oregon Divorce and Estate Planning Attorney
Creating a blended family is an exciting new beginning. Creating an estate plan for your blended family helps to ensure the protection of everyone you love, and an attorney who understands both complex family relationships and estates is essential to the process. Based in Salem, Litowich Law helps with estate planning for blended families, so that you and your family can face the future with optimism and peace of mind. We work with clients throughout Oregon, and welcome you to contact us for a consultation.Categories: Estate Planning