When you think about securing the future of your loved ones, estate planning should immediately come to mind. Having the right estate documents written correctly and strategically, and regularly updating them, is the best way to make sure your family has stable finances and a clear path after you are deceased. However, given the time, work, and legal knowledge needed, this can be a lengthy process – especially estate planning for blended families. Spouses who each have children of their own and assets from a previous marriage may face double the effort or more when writing wills, trusts, and other estate documentation. Complications such as previously received inheritances, the need to update existing wills, and dividing individual assets between biological children and stepchildren are not uncommon.
These potential difficulties are why choosing the right estate planning attorney is key. Carefully and diligently creating all the required documents, with experienced guidance, is the best way to ensure your spouse, your own children, and your stepchildren are all protected by your estate plan. SGW Law is one of the most trusted firms for estate planning in NJ, and many of our clients have blended families – we work tirelessly to make sure their estates are optimal for the finances of all of their loved ones and cover all possibilities in their unique familial situations. Contact our team online now or read on to learn more about the specifics of estate planning for blended families.
What Makes Estate Planning for Blended Families Unique?
If a first marriage is the start of a new family history, a remarriage resulting in a blended family is the combination of multiple, existing histories into a new dynamic. Spouses who have a blended family often each have their own biological children. If their former spouses are still living, the relationships they have with these individuals can vary widely from no contact to an active presence in one another’s lives. Since estate planning becomes more complex when there are more potential heirs to account for, having a blended family almost always has this effect.
For example, if spouses only have biological children or children adopted as a couple, while these children are minors, they will probably all be entrusted to the same guardian in the couple’s will. However, if the spouses each have children from a previous marriage, they may each want to have their biological children cared for by different relatives who know them best. If they live in different states, estate tax considerations may be different for one’s own children and one’s stepchildren. And some spouses with their own sets of children may want to treat joint and individual assets differently when it comes time to will these assets.
Common Challenges for Blended Families
While blended families often enjoy the beauty of multiple perspectives and life experiences, they just as often face challenges. These difficulties usually arise from conflicting expectations from different family members, all of whom may have valid reasons for their position. A common, sometimes fraught, conversation that remarried spouses must have is about what assets to leave to stepchildren. While most stepparents love and care for their stepchildren in the same way as they do their own children, they also may not want to hurt their biological children’s feelings or take away something that is “rightfully” theirs by further dividing an inheritance.
There are also cases in which extended family contributes to these challenges. A remarried person’s in-laws may have preferred their spouse’s former partner and thus implicitly or openly disapprove of the marriage. Divorce is a matter of controversy in some religious or cultural traditions – even remarriage after widowhood may be as well. These strong feelings inherently impact estate planning in terms of who a business is entrusted to, who would become the guardian of children who are minors, and more.
Legal Considerations in New Jersey
Inheritance in the United States is a state-level rather than a federal matter. This means each state has its own rules surrounding estate planning. New Jersey has some provisions of inheritance law that are helpful for blended families – for example, both children and stepchildren are considered Class A beneficiaries of an estate, meaning they are exempt from state inheritance tax. (Federal estate tax only applies to the largest of bequests, with $13.99 million and below being tax-free.) Step-grandchildren, however, must pay tax on an inheritance in NJ, and step-relatives are not automatically given property if they have a family member die intestate. Probate in New Jersey can be a lengthy process for any heirs, especially when the intricacies of a blended family estate are involved, so it is important to have an experienced inheritance lawyer for this matter.
Learn more about common mistakes to avoid when drafting a will in NJ.
Key Tools for Blended Family Estate Planning
Legal instruments like the following are useful for anyone’s estate plan. They may all be used, or only some of them may be relevant, depending on unique family and financial situations. People who have blended families can leverage these documents in specific ways to protect all of their family members’ interest in their estate.
Wills and Trusts
A will is typically the first estate document that a person will write. While wills are not sufficient for an entire estate plan, they are necessary to avoid the undesirable outcome of intestacy, wherein the state divides property according to relevant laws. Wills can only directly pass property down and give children into someone’s guardianship, but there are few rules about who can be an heir. This means that if you are considering the needs of children from different marriages, for example, being careful about how you construct your will is a good place to start.
Read more about the duties and responsibilities of a NJ executor.
Trusts come in many forms, but two basic types are revocable and irrevocable. At base, the purpose of a trust is to place an asset with a third party who will manage it on behalf of the beneficiary. Someone in a blended family situation may want to strategically use trusts to provide for their own biological children specifically, while giving other family members property in their will. A revocable (living) trust lets the grantor – the original owner of the property – amend or revoke the term at any time. By contrast, an irrevocable trust can very rarely be amended, but is considered more secure for that reason. One important reason to use an irrevocable trust is for the sake of a child or stepchild with special needs.
Read more about trust basics for trustees and beneficiaries.
Guardianships and Beneficiaries
It is typically a simple process to designate a guardian for a minor in your care when you are writing or revising your will, but it is all-important. As long as your intentions are clear and uniform, courts will honor it and the children involved will immediately have a trusted legal guardian. Similarly, beneficiary designations on financial accounts are usually easy to make or change, but they should always be looked at and double-checked because in a conflict, they supersede a will.
Learn more about SGW Law’s transferring of guardianship.
Life Insurance and Retirement Accounts
Today, life insurance policies and many types of financial instruments, including retirement investments, have a way to quickly designate beneficiaries online. However, just because this can be done casually doesn’t mean it is not significant. The beneficiary designations are legally considered very important, so much so that they will override a will or other estate document if they contradict each other. For example, if Alma and Benji state in their wills that their life insurance proceeds are to be divided equally among all their children and stepchildren, but Alma only named her son Cillian as the beneficiary of her insurance, Benji’s asset will be divided but Alma’s will solely belong to Cillian. If you are remarried and have an account of this type that existed during your previous marriage, it is important to make sure the beneficiary designation lines up with what your other estate documents say.
Considerations for Blended Family Estate Planning
Individuals in blended families may consider different factors in estate planning than others do. Asset distribution among natural children and stepchildren and avoiding family conflict is often at top of mind. Nevertheless, everyone’s situation is different, and so blended families may take differing approaches to the following.
Fair Distribution of Assets
The concept of “fairness” in dividing property in a blended family means different things to everyone. Some people may strive to give their children and stepchildren absolutely equal shares, while others may be mostly concerned with providing for their surviving spouse, with financially stable adult children potentially being willed some lesser amount. Ideally, everyone in the family should have clear expectations from the estate and be on the same page about the resulting financial strategies. However, that is not always possible – personal and emotionally based conflicts simply can’t be resolved with financial talk. No matter what, however, there should be communication from the testator to their heirs, even if some of those family members do not speak to one another.
When you are developing your estate plan, you may want to set up trusts with different terms for each of your children or stepchildren, in a way that is not literally equal but that you would consider fair. If one has the ambition of starting a business and another will be entering college in several years, for example, each of them could receive a trust for that purpose. In the common case of objects of both monetary and sentimental value, specific bequests are very useful. This term simply refers to a clause giving an heir a “precisely identifiable” piece of property. For example, assume Della is writing an estate plan and giving precious jewelry to her three children. Geraldine, her youngest daughter, has always loved Della’s mother’s diamond wedding ring (valued at $20,000), and Della wants Geraldine to have her grandmother’s ring for her eventual wedding. Della could use a specific bequest so that Geraldine would receive that specific ring and her siblings Eustass and Fia, who don’t have a sentimental attachment to any of the jewelry, can freely inherit the rest and sell it.
Protecting a Surviving Spouse
Naturally, if your spouse survives you, then you want to be sure they will remain financially secure. Most people who have remarried will also want to provide for any children they have from a previous marriage, and these goals may occasionally seem to conflict. Depending on the relationship your current spouse and your own children have, you may wish to gift them assets through different means. Trusts are once again useful for this purpose, as are other tools such as life estate or conditional inheritances, which your estate lawyer can advise you about in detail.
Read more about what happens if my spouse and I die at the same time?
Minimizing Family Conflicts
Unless there is a truly unresolvable existing conflict, most disputes among blended families on the matter of inheritance come from a lack of transparency. The first thing you must do is communicate clearly within your own relationships. Estate documents must be written unambiguously and in fully correct legal language. Assistance from an attorney with experience and skill in estate planning for blended families is a tremendous help in all of these instances.
Ready to start estate planning? Read more to learn the most essential estate planning documents.
Guardianship and Beneficiary Planning
Minors are inherently vulnerable in legal terms, and the care of children who have not come of age is a primary concern of many people planning their estates. Straightforward and clear designation of guardians and beneficiaries – that is the same in all estate documents – is key. Whether children and stepchildren are sent under the care of the same relative or different ones, the top priority is that the family’s intentions are honored and no child is left in legal limbo.
Estate Planning Guidance from SGW Law Firm
Married individuals who have blended families, even more than most people, must plan their estates early and carefully. Well-written legal documents including wills and power of attorney designations, the strategic use of trusts, and the guidance of an experienced attorney specializing in this area are needed. When done right, a blended family estate can not only prevent conflict and protect all family members, but also have tax and other financial advantages. Contact us now to consult the SGW Law team and begin working on your ideal blended family estate plan in NJ.
Read more about powers of attorney and why you would need them.
Estate Planning (FAQ)
What is Estate Planning for Blended Families?
Estate planning for blended families is the process of organizing and legally documenting how assets, guardianship, and inheritances are handled across spouses, children, and stepchildren.
Why Is Estate Planning for Blended Families More Complex than Traditional Estate Planning?
Blended families often have multiple sets of children, ex-spouses, and varied assets, which creates additional legal and interpersonal considerations.
What Legal Tools are Most Important for Blended Families?
Wills, trusts, guardianships, beneficiary designations, and life insurance alignment are critical for protecting all family members.
Can Stepchildren Inherit Without Explicit Planning?
No, without clear legal documentation, stepchildren may not automatically inherit under New Jersey law.
When Should I Start Planning for a Blended Family Estate?
Estate planning should always begin as soon as family dynamics change, such as marriage, remarriage, or the birth of children, to ensure proper legal protection.
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