Blended families are relatively common. People with children who divorce or lose their spouses may choose to remarry. When two people with children combine their families, the resulting blended family is complex, at least from a legal standpoint.
Stepchildren do not necessarily have the same legal rights and protections as biological children unless a stepparent adoption occurs. They may not receive an inheritance unless their stepparent drafts a will. There can be conflict between stepparents and stepchildren regarding the distribution of property after one parent dies.
There may also be conflicts related to decision-making and authority in the event of an incapacitating emergency that affects one parent, especially once children reach adulthood. The establishment of a new estate plan can help parents protect themselves, one another and their children when they create blended families.
What documents are necessary?
As briefly mentioned above, stepchildren generally do not have a right of inheritance under intestate succession laws. A will or a trust may be necessary to extend inheritance rights to stepchildren. Clear beneficiary designations in a testamentary instrument are necessary even in cases where parents do not intend to provide inheritances for their stepchildren but only their biological children.
Trusts can help balance the conflicting interests related to real estate or a family-owned business. Trusts provide more structure for the distribution and management of key resources. Spouses can provide one another access to resources without yielding full control. That way, those resources remain intact for children to inherit.
Living wills and powers of attorney may also be beneficial for those in blended families. Each parent can clearly designate one individual to act as their agent in the event of an emergency. Additionally, they can provide clear instructions regarding their medical preferences so that family members do not fight about decisions if an emergency arises.
The dynamics within a family and the resources of the individual parents play a major role in guiding the creation of an estate plan for a blended family. Working with an experienced estate planning lawyer to make it easier for parents in blended families to establish documents that provide appropriate guidance and support for their loved ones.