If you’re thinking that creating an estate plan is difficult, it gets even more complicated when you are dealing with blended families. I.E stepchildren, former spouses, and multiple sets of grandparents.
Recent data has shown that 42% of Americans are in a “step relationship”. That means that almost half the families you know are dealing with this complicated challenge.
Here are the hard facts:
“Most stepchildren have no automatic inheritance rights” except when they have been legally adopted. So, if you’re planning on providing for your stepchildren make sure that you have explicitly spelled it out in your estate plan – PERIOD!
Setting Up A Trust
I love how a colleague has described a trust as a family financial blueprint because that’s exactly what it is.
A trust is not a simple will. A trust gives you much more control concerning the distribution of your assets.
In a trust, you can set up all the provisions that will protect your biological children and your stepchildren so that everyone gets their fair share.
We, at Kabb Law, know how awkward family money talks can be, and trust me, they are even more awkward with blended families. But we are here to make sure that you have a clear and legally sound estate plan. Following a death, we have seen families torn apart. This doesn’t need to happen as long as we schedule these uncomfortable conversations NOW!
Recommendations for Estate Planning of Blended Families
QTIP:
Qualified Terminable Interest Property. I know this is a mouthful, but I recommend this for blended family planning. What happens is that your current spouse will receive an income from the trust as long as are alive, but you have total control of where the assets go after they die. With this in place, you are assured that all your children from a previous marriage will not become disinherited.
Regular Check-Ups:
Life is neve static. It is constantly changing. Your kids grow up, and new relationships come into being. That is why we recommend that you contact us at 216- 991-5222 for regular check-ups to make sure that your estate plan still reflects all that you want for your family and any new family dynamics. You want to be certain that there will be no conflicts later on. Be detailed. Carefully list who gets what.
Everyone Has A Perspective:
Each family member has individual expectations and individual emotional baggage. This is especially true in blended families. While your spouse might be concerned with protecting your assets that go to their biological children, your kids might worry about their inheritance going to some stepsiblings that they hardly even know. This is an important concern that we need to address here at Kabb Law. We know the ropes including all the possible pitfalls. We are the ones who will make sure that you will avoid these pitfalls.
In other words, blended family estate planning is not just about dividing assets, it’s about ensuring peace of mind and preserving relationships. Future family harmony depends upon it.
Remember, your goal isn’t perfect equality, your goal is to be fair and clear.
Keep in mind that fair doesn’t necessarily mean equal – and that’s very okay. What Kabb Law can make certain is that your wishes are clear and legally sound.
Start Now:
Recent statistics have shown that “16% of children in the United States live in blended families, yet many of these families put off estate planning until it’s too late.”
Since financial discussions can make everyone squirm, we recommend that you set up some family meetings with us at Kabb Law to discuss financial matters and estate plans.
You will avoid any surprises among all the family members by calling Rachel at Kabb Law: 216-991-5222.
