How to Ensure a Fair Distribution of Assets in a Blended Family

Estate planning is essential for all families. However, when you have a blended family, estate planning is vital to provide a fair distribution of assets. Blended families may include step-parents, step-siblings, half-siblings, former spouses, and other relatives. Creating a fair estate plan that respects your wishes while satisfying everyone’s desire to inherit assets can be difficult. In this blog, our Palm Springs estate planning attorneys discuss considerations and tips for estate planning for blended families.

Understanding Intestate Succession in Blended Families in California

A primary goal of estate planning for blended families is to ensure your assets pass to your intended heirs. Estate planning can also avoid potential conflicts between family members. Planning in advance lets you make your wishes clear to your loved ones.

If you do not have a Will or other estate planning documents, California’s intestate laws determine who can inherit from your estate. Intestate succession does not include step-family members. Therefore, if you do not have a Will, your step-children could not inherit from your estate.

Your current spouse may receive a large portion of your estate through intestate succession. Without a Will, your children from a previous relationship may not receive the inheritance you intended to leave for them.

Disputes Between Members of a Blended Family

An estate planning issue for blended families is arguments between children and step-children. Your biological children may believe they are entitled to a larger portion of your estate or that step-siblings should not receive any inheritance. A surviving spouse may be more concerned with providing for themselves and their children than their step-children.

A challenge many people encounter when creating an estate plan for a blended family is how to provide for their current spouse, children from a former relationship, and step-children. Another issue can arise when a spouse has substantially more assets than the other spouse. Determining a fair distribution between blended families may not be simple under these circumstances.

Key Considerations for Estate Planning for Blended Families

An estate planning lawyer helps you prioritize your goals for your estate and execute documents to ensure your wishes are honored after your death. Common estate planning tools include:

Wills and Trusts

A Will is an essential document for estate planning. Your Will allows you to name your heirs, designate how your estate will be divided, and appoint a guardian for minor children.

Numerous types of trusts can be used to address issues related to blended families and estate planning. For example, you can place your home in a trust to allow your spouse to remain in the home after your death. However, after your spouse moves out or passes away, the home is left to your children. Trusts also allow you to provide for someone with special needs, protect a family business, and protect assets from creditors.

Beneficiary Designations

Some assets, including life insurance and retirement accounts, pass directly to a beneficiary outside the estate. You can use beneficiary designations to leave money to specific heirs. It is important to ensure all beneficiary designations remain updated.

Prenuptial and Postnuptial Agreements

Marital agreements can also be useful for estate planning for blended families. Prenups and postnups can designate how to distribute specific assets after a spouse’s death. The agreements can also designate community vs. separate property, which is important since California is a community property state.

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