5 important estate planning considerations if you have a blended family

Blended families are increasingly common – whether through remarriage, stepchildren, or having children later in life, many families today don’t fit the traditional mould.

A large family means you’ll have more wonderful people in your life, so estate planning can become a little trickier.

For example, you might want to ensure your current spouse is financially secure while also protecting an inheritance for your children from a previous relationship. Or maybe you want to make sure you treat all the children in your family equally.

Such issues can be sensitive and without careful planning, misunderstandings—or even disputes—could arise.

As such, one of the best things you can do is talk openly with your family about your wishes.

Start by being open with your family

While talking about your estate plan and eventual wishes may not be the easiest conversation to have, explaining what you’ve put in place can help to make things much smoother later on.

Being upfront now helps everyone understand your decisions and avoids confusion or tension in the future.

Read more: Are you prepared for the “great wealth transfer”? 3 essential family conversations you need to have

Keep reading to find out more essential estate planning considerations if you have a blended family.

1. Review your will

A will is an essential aspect of your estate plan.

If you pass away without having written one, the rules of intestacy will apply.

Typically, only married or civil partners and, potentially, other close relatives, can inherit under the rules of intestacy. So, should you die without a will and while you’re still married to your ex-partner, they could stand to gain over your new partner.

Hopefully, you’ll already have a will. This is great, but don’t let it gather dust!

It’s important to review it regularly, especially after big life changes like marriage, divorce, or having more children. A will written years ago may no longer reflect your current circumstances or priorities.

Updating your will ensures that everyone you care about is provided for in the way you intend. It also gives you control over how your estate is divided, rather than leaving it to chance.

2. Decide how you’d like to divide your assets

This is where things can become tricky.

You may want to leave the family home to your spouse so they can continue living there – but you might also want your children to eventually inherit its value. Perhaps you’d like to provide for stepchildren, even if they’re not legally your dependants.

Every family is unique, so there’s no one-size-fits-all answer.

You might choose to split assets equally between your spouse and children, or you may wish to prioritise one group first.

What matters most is making a clear, written plan that reflects your wishes.

Such decisions can lead to mixed emotions. And, as mentioned above, having open conversations with your loved ones while you’re alive could go a long way to lessen the risk of conflict later on.

3. Consider using trusts to help protect your legacy

Trusts can be useful when you want to support different family members with different needs.

For example, you could set up a trust that allows your spouse to live in the family home for the rest of their life, after which the property passes to your children – ensuring both the security of your spouse and the inheritance you leave for your children.

There are many different types of trusts, and knowing which is right for you can be complex. We can help you explore which type might work best for your situation.

4. Provide financial support to your loved ones sooner

You may wish to start passing wealth to your loved ones during your lifetime.

And when you have a blended family, this can be particularly helpful. For example, you might want to give a financial gift to your adult children to help them get on the property ladder.

Giving financial gifts during your lifetime can also help to reduce potential Inheritance Tax.

If you’re considering making a large financial gift, we can help you understand how this may affect your estate plan, and ensure that your generosity won’t impact your own financial security.

Read more: Giving while living – 5 loving ways to gift your wealth and reduce Inheritance Tax on your estate

5. Remember your own financial needs

While estate planning naturally leads you to focus on your loved ones, don’t forget about yourself.

If you decide to gift wealth during your lifetime, it’s equally important to make sure you have enough to maintain your lifestyle and cover future expenses, such as care costs.

This can be especially important if you’re supporting both a new spouse and children from a previous relationship. Stretching yourself too thin could create unnecessary stress later on.

We’re here to provide a rational sounding board, helping you to find the right balance between protecting your family and ensuring you remain financially secure.

Get in touch

Regardless of your family circumstances, estate planning can be complex. If you’d like help to create an estate plan based on your circumstances, giving you peace of mind for your family’s future, please get in touch.

Email info@logicfinancialservices.co.uk, call 01491 612 754, or drop into the office.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

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