Blended families are generally married couples who have children from previous marriages or relationships. These families can include stepchildren, children from the current marriage, and extended family members living in the same household.
Blended families can face many challenges if there is no estate plan. It is important to address the financial obligations and responsibilities that come with having a blended family, making sure children from different relationships are taken care of in the event that one (or both) of the spouses die.
The main priority in estate planning for a blended family is ensuring that if a spouse dies, the inheritance of the children of the deceased spouse will be protected—preventing the surviving spouse (or his or her children) from reducing or eliminating provisions that are in favor of the deceased spouse’s children.
What happens to the inheritance if there is no will?
The legal term for not having a will is being “intestate.” If someone dies intestate in the state of Texas, Texas law determines who will inherit the decedent’s property. Many factors are considered in this process, including whether they left behind a spouse or children, and whether property is “community” property or “separate” property.
Not having an estate plan is a big mistake, especially if you have a blended family. Without an estate plan,Texas law decides who receives your assets, which could be completely against your wishes, and your estate could be tied up in a lengthy and costly probate process.
What are some planning options for blended families?
There are several common estate planning options for blended families. Trusts are a great option. Trusts can be set up to hold and manage assets. The trust ensures that you have control over what happens to your assets when you die. For more information on trusts, please see Types of Trusts: Which One Is Right For You?.
Specifically, marital trusts are beneficial because they allow the decedent’s assets to pass to the surviving spouse, while at the same time setting aside any residual assets for the children after the surviving spouse dies.[1] Another beneficial option that does not involve trusts is to leave specific assets to your biological children through your will, known as an immediate bequest.[2]
Regardless of how you structure your estate plan, it is very important to consider including your family in the estate planning process (at least at a high level); this will help avoid potential conflicts over your assets that may arise after you die. Secondly, choosing the right trustee/executor is important; choosing a professional fiduciary may be a better option than choosing someone in the family. Lastly, it is also important to revisit your estate plan on a regular basis and update it as necessary, especially in the event of major life events (e.g., marriages, divorces).
Conclusion
Although estate planning for blended families can be more complex than for traditional family structures, it is still achievable with the right estate plan and the right estate planning attorney. Having an estate plan in place gives you more assurance that your wishes will be fulfilled once you die. An estate planning attorney can answer your questions and guide you through each step of the process.
Contact Provident Legal Counsel today to discuss your case and legal options. Schedule a Consultation or call (214) 432-6100.
[1] Estate Planning Advice For Blended Families, Trust and Will, available at https://trustandwill.com/learn/estate-planning-for-blended-families.
[2] Id.
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