Estate planning for blended families can be challenging. If you are part of a blended family, you must take the time to carefully review and update your will and other end-of-life documents regularly.
Top mistakes to avoid
Many people make the mistake of not updating their estate plans after a divorce or remarriage. If you don’t change your will, your former spouse may inherit your assets. You might also not want to treat all heirs equally when estate planning, especially if one spouse came into the marriage with significantly more financial assets. The spouse who came into the marriage with more might want to ensure that their children from the first marriage are entitled to more. You also might have children with disabilities or a child who is unable to manage money. In such cases, creating a trust for these kids might be appropriate.
Other common mistakes
Another common mistake that people make is failing to plan for incapacity. While everyone hopes to die peacefully while still of sound mind, many people develop conditions in old age that make it difficult for them to make decisions. By creating a living will, naming someone with power of attorney and providing an advance directive for medical care, you can spare your blended family the heartache of making difficult decisions or possible family conflict.
If you want to save your heirs a lot of frustration and ensure that everyone gets what you wanted them to have upon your passing, you should ensure that you make plans now rather than waiting.