Estate Planning For Blended Families: 5+ Tips For Planning Ahead

Estate Planning For Blended Families

Considering the inherent complexity of estate planning, it’s no surprise that many special considerations come up when doing estate planning for blended families. While imagining scenarios in which your estate is dealt with contentiously might not be pleasant, it’s important.

General guide to estate planning

You may want your spouse’s children to receive as much as your children will, or you may want your children to receive the bulk of your wealth. Your estate planning strategy will vary based on several considerations. Here is our general guide to estate planning for blended families.

Talk to Financial Planners and Estate Lawyers

Estate planning is incredibly complicated, to begin with, and estate planning for blended families takes those complications to whole new levels. You may, for example, not know that getting married will generally invalidate any existing will. That means that you need to rewrite your will as soon as you get married.

Retirement Plans and Accounts

You may feel your spouse won’t have the financial means to support themselves in the event of your passing; you can give retirement accounts to them. On the other hand, you may feel they’ll be just fine without this money, in which case you’ll grant it to your children.

Life Insurance

Generally, life insurance is a good investment strategy when you’ve already got a number of short and medium-term investments; by its very nature, life insurance won’t payout when you need it.There’s a lot of room for creativity when structuring who benefits from a life insurance policy.

Update Regularly

Most estate planning advice you’ll find online will advise you to update your will every 5 years though as you get older, you may want to update more frequently. 

Prenuptial Agreements

What is your company worth? Using a prenuptial agreement to protect that business and ensure that a portion of it or all of it goes to your children is something many business owners in blended family situations can benefit from.

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