Estate Planning is essential for all families; however, it is very important for blended families. Creating an estate plan will ensure that your wishes for your family are honored and if you already have an estate plan, it should be revised after different significant life events occur. Getting married is one of them.
What is a blended family?
A blended family is when you get married or remarried after you have children. Becoming combining two families creates a blended family.
Where to begin?
If you are creating a blended family you want to have a will in place that outlines your wishes for your family. You can simply leave everything in the hands of your new spouse, however, creating only a will may cause disputes to occur among your surviving spouse and your children. Also, going this route, you will have no guarantees with regards to how he or she will plan his or her estate. You could ultimately be DISINHERITING your children or they could receive far less than you intended. Therefore, a trust should be created as well.
Creating a trust can allow you to provide for your surviving spouse and children. You can outline in detail exactly how you want your assets distributed. Specifically, a qualified terminable interest property trust (QTIP) can be very useful for blended families. The surviving spouse receives income from the trust, but after the death of the surviving spouse, the children of the grantor assume ownership of the remaining assets. Taking this approach can ensure that your surviving spouse and surviving children are taken care of after your death.
Moreover, if you don’t want your children to have to wait until the death of your surviving spouse to receive your assets, you can specifically outline exactly how and when you want your assets distributed your children.
Next, you want to make sure you decide who will make health care decisions for you, if you cant make them yourself. You will have to decide whether your spouse or a child will make those decisions, which can cause disputes to arise. However, discussing your wishes with your loved ones prior will limit the chances of conflicts arising.
Choosing a Guardian for your children
In addition to determining how your assets will be distributed after your death, you may need to consider naming a guardian who will care for your minor children. Here are a few things that you should understand about guardianship for your children. First, if your child has another legal parent who is alive, such as your spouse from a previous marriage or partner from a previous relationship, then they will automatically get custody of your child if you die. If there are reasons this person should not be awarded guardianship, such as circumstances involving abuse and neglect, it is extremely important that you detail this in your will and ask to award guardianship to someone else.
If your child does not have another living legal parent or the other living parent lost or surrendered their parental rights, it is essential that you name a guardian so the court knows who you want to raise your child.
The second thing to understand is that naming a guardian in your will does not mean they will be appointed. The court will consider your wishes, but it has the final say over what is in your child's best interests. The court will consider several factors when appointed a guardian. This makes sense because you don’t know the future when you write your will. You might name your current spouse as guardian, but if you get divorced or they die before you do, they either can't be the guardian or may not be appropriate. That is why it is crucial that you name a guardian and outline reasons why you chose them and name an alternate guardian in case your first choice is not available.
What happens if you die without having an estate plan in place?
Without having any estate planning documents in place, this is called intestacy. In this situation, state intestacy laws will determine how your assets will be distributed. Generally, these laws divide the assets between your spouse and your legal children. Therefore, step-children will not inherit anything from you. Oklahoma laws do not address step-children in estate planning when someone dies without a will. This means that if you pass without creating a will or trust, your step-children will inherit nothing from you. To provide for your step-children, you can outline your wishes in a will or a trust.
What about assets I had prior to marriage?
A concern that comes up in blended families is that both parents often come into the marriage with separate assets of their own. A detailed and well written will or trust outlining your wishes for how and who you want your assets, you acquired prior to marriage to be distributed, will ensure that your assets are distributed in accordance to your wishes and no one is left out.
IMPORTANT TO NOTE: If you predecease your new spouse without an estate plan or with an estate plan that leaves everything to your spouse, then you may forever DISINHERIT YOUR OWN CHILDREN from your share of such blended wealth. Furthermore, upon the death of your new spouse, your assets may be inherited by your stepchildren, or even by your new spouse’s next spouse and their children.
Remember the goal is to protect your legacy and make it as easy as possible for your heirs.
You are already taking the steps in the right direction by reading this article. For more information on protecting your legacy and creating an estate plan, please contact the Law Office of Cathryn D. Gibbs or book a consultation online.
DISCLAIMER: The information and materials on this website are provided for general informational purposes only, and are not intended to be legal advice. No Attorney- Client relationship is created by use of this website. Filling out a form on this site or sending an email does not establish a client-lawyer relationship. In accordance to policy, The Law Office of Cathryn D. Gibbs, PLLC does not accept a new client without first obtaining a signed engagement agreement.
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