Modern families can be complex, especially in blended families bringing together children from previous relationships. It's important that your estate planning looks after all your family, and that extends beyond taking care of their legacies in your Will.
Blended families may include children from one or more previous relationship or marriage for each of you, plus any further children you may have together. Your estate planning needs to take all your children into consideration, and accommodate their needs (and yours) for now and the future.
Be transparent
You need to be transparent and clear about your wishes and share them with the family when you first make or update your Will. Your passing will be a difficult time for all of the family, and the last thing they need is a shock / surprise in your Will about who inherits what (and why). You can add an extra Will Clarification Letter to your Will to make your wishes crystal-clear if you wish.
Bloodline planning
Key to this transparency is your bloodline planning considerations. Bloodline planning ensures that valued aspects of your legacy, such as family heirlooms or property, stays within 'the family' and doesn't get dissipated amongst your children's spouses or any future partners. At its most basic, it ensures family valuables are inherited by those who will treasure them and not just sell them on.
Business succession and blended families
The same applies if your family are set to inherit your business. You need to plan business succession carefully, to ensure that your company can carry on and that only those family members with an actual interest or the right skillsets are involved. You'll also want to look after your other "family" - your employees and business partners. For more details see our articles on:
Second marriages and more
One of the key issue that arises with blended families is when children from the first marriage miss out if their parent dies and leaves all their estate to their spouse, who is their children's step parent.
There is no obligation for that step-parent to leave any of their estate to the children of you as their now deceased partner, especially if they in turn go on to remarry. So, in effect, all your estate could end up with their children, not yours. This happens all too often when spouses make mirror wills where all the estate passes automatically to the surviving spouse.
If you have minor children from a previous relationship, you need to include guardianship arrangements in your Will to ensure they are looked after.
Protecting everyone's interests
If you want all or part of your estate to go just to those you want it to, you can ring-fence assets within a Trust. A Trust can protect your legacy against future remarriages, bankruptcy and even (to some extent) IHT. At Panthera Estate Planning, we can guide you through the legalities of Trusts and have them drafted for you too, for a one-stop service.
What's more, as an article in the Financial Times pointed out:
"You cannot guarantee that the position between beneficiaries will be the same when you die as it was at the time a will was made … While it is natural to hope family members will remain on good terms, it is important to protect each beneficiary at what is a difficult time.”
No Will = no control
if you do not make a Will, when you die your estate will be divided up according to the laws of intestacy. The rules are strict, and your married partner will only receive the first £322,000 if you have children. See more on dying under intestacy rules here.
Getting married? You need a new Will
When you marry (or remarry), your current Will becomes invalid. So, you need to make a new one, regardless of what the old one stated. This is also a good opportunity to review and update your estate planning, so you make sure everyone is provided for, including yourself and your new spouse. There is little point in wrapped large amounts into a Trust or making generous gifts, for example, only for you to run out of money for your later life and long-term care.
See our previous article on blended families and Wills.
More on updating a Will
Blended families and LPAs
LPAs (Lasting Powers of Attorney) are a vital part of life planning, especially if your blended family might not get on or have differing views on key areas such as health care. You can appoint a number of people to act as an attorney. You should choose people who you trust will act in your best interests and appoint them to act "Jointly and severally". This ensure that they make major decisions together and share the workload. Your attorneys can include an independent professional to help with the day-to-day management if required.
Need advice on estate planning and writing your Will?
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