5 helpful estate planning tips when you have a big, blended family

If you’ve made a life with a new partner and one or both of you have children from a previous relationship, you could face some unique estate planning challenges.

According to figures recently published in the Guardian, an estimated 1 in 3 families in the UK are “blended”[1].

While bringing families together can bring great joy, how can you make sure that everyone is taken care of if anything were to happen to you or your partner? Read on to discover some options for estate planning when you have a blended family to consider.

Estate planning for blended families may be more complex

Estate planning is not inherently different for blended families, but it can be more complicated as there are additional family members and an assortment of relationships to think about.

If you have young children, you may need to decide who to select as a guardian for your children if anything were to happen to you or your spouse, as well as making arrangements for dividing up your estate.

These considerations may feel overwhelming, but it's important to put plans in place so that everyone is catered for according to your wishes.

Estate planning tips for blended families

Here are five things to consider if you want to ensure that each family member is treated fairly.

1. Write or update your will

The first step in planning how your estate will be distributed after you die is to draw up a will.

If you already have one, make sure that you revisit it regularly and make appropriate amendments if your circumstances change, for example, if you get remarried.

Dying without a valid will could result in your estate being distributed according to the rules of intestacy. This may mean that your wishes are not upheld, and your children may be disinherited.

Another issue you may not realise is that if you’re still married to your ex-partner and don’t have a valid will, your ex could stand to gain over your new partner.

Writing a will when you have a big, blended family can be complicated, so it may be a good idea to work with a solicitor to incorporate all the details necessary to ensure that your estate is distributed according to your wishes.

This is something that we can help with. Our online Will writing service is simple to complete and puts you in charge.

2. Consider setting up a trust

A trust is a useful way of protecting your assets and ensuring that they pass on in the way you want them to.

Your assets can be held in trust until a future date of your choosing. So, if you want to pass on assets to a child who is too young to handle their affairs for example, a trust could help.

The following trusts may be helpful when estate planning for your blended family:

• Life interest trust – this allows your surviving spouse to receive an income or remain in the family home until their death, when the remaining estate passes on to your children from your first marriage.
• Discretionary trust – your assets can be distributed to multiple beneficiaries. The trustees can make certain decisions about how to use the trust income, so you may want to appoint one of your children or an impartial third party as a trustee to ensure that your wishes are upheld.
• Family trust – all of your assets will go into a combined trust and your surviving spouse can decide how they are distributed depending on the needs of each child.

It’s important to take your time to consider what you'd like the trust to achieve.

To discuss whether a trust may be suitable for your plans or you need to make changes to an existing trust, please get in touch.

3. Talk about your intentions with your loved ones and your ex-spouse

You may feel uncomfortable broaching the topic of your wishes and estate plan with your family but communicating your intentions can be extremely helpful for everyone involved.

It could also make the process of carrying out your wishes less stressful for your family as they know what to expect.

If possible, include your ex-spouse in your estate planning, especially if you have children under the age of 18. This could help arrangements run smoothly and prevent disagreements when the time comes.

4. Be specific about your wishes

If you make your wishes clear in your estate plan, there is a greater chance that they will be upheld, and your assets will pass on as you intend.

While you might plan for your estate to be divided equally between your beneficiaries, you could specify that a particular asset goes to one child. Or you may want each family member to perform a specific duty at your funeral.

Providing clear instructions will reduce the stress and limit any potential for misunderstandings between your family members during a difficult time.

5. Revisit your estate plan regularly

It’s worth reviewing your estate plan regularly, especially if your circumstances change significantly, for example, if you move house or a grandchild is born.

Marriage automatically revokes a will, so if you marry or remarry, you’ll need to create a new one.

No two blended families are the same and estate planning for multiple beneficiaries can be complicated.

Talking things through with a financial planner could help reassure you that you have the right plans in place and ensure that your wishes are upheld when the time comes.

Get in touch

If you need help organising or reviewing your estate plan to ensure your whole family is looked after,  please get in touch.

Email info@aspirafp.co.uk or call us on 0800 048 0150.

Please note

The information contained in this article is based on the opinion of Aspira and does not constitute financial advice or a recommendation to any investment or retirement strategy.

You should seek independent financial advice before embarking on any course of action.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

[1] https://www.theguardian.com/uk-news/2021/aug/17/goodbye-wicked-stepmother-bonus-families-adopting-more-positive-terms