Congratulations, But Read This

Currently, with divorce rates still very high, remarriage is not uncommon, and many newlyweds find themselves with stepchildren, and the terminology, Blended Family, becomes the word of art. In fact, forty percent of all families in America are blended, with one partner having a child from a previous marriage.

Many factors in a blended marriage create complications when one of the parents passes away, with unintended consequences. These potential difficulties can be completely avoided; however, with an estate plan that understands the challenges faced by blended families

First, if you don’t have a will that says otherwise, your spouse will inherit everything when you die. This may be your intent, but it’s important to remember that your children from your first marriage may never inherit from your estate. Let’s take a look at the kinds of problems we often see when couples don’t have one.

• Natural children are disinherited. If your spouse gets everything when you die, what happens when he or she dies? Most likely, the house and other assets will go to their natural children, and your children will be completely left out.
• Inheritances are unequal. It is not unusual for one of the spouses in a re-marriage to bring significantly more assets to the partnership than the other. If both parents die, the assets will be split evenly among all of the children, regardless of what belonged to whom previously. If the spouse with more assets dies first, all of those assets could eventually pass to stepchildren rather than natural children.

Joining two families through a second marriage can create a lot of confusion and sometimes even chaos. These are some of the options to consider:

• Making sure the surviving spouse is well cared for
• Guaranteeing that your natural children will inherit family heirlooms
• Ensuring a fair division of assets between the two (or more) families
• Encouraging adult children to not depend on a possible future inheritance
• Communicating the plan to all parties so that there are no surprises after your death
• Discouraging potential contests of the will in probate

After your vows. Take some time to discuss with your new spouse, the issues of blending and work out a plan, that meets your needs at this new time in your life.

Be Educated! Be Proactive!