Blended Families Can Make for Complicated Financial Planning
Blended families are now part of everyday life. Whether you’ve found love later in life, remarried after divorce, or entered a civil partnership where one or both of you already have children, the definition of “family” has expanded. And so have the legal considerations that come with it.
Speak to a Wills expert on 0113 320 5000
Estate planning is never one size fits all at the best of times. For blended families, it can be particularly complex. You may want to provide for a spouse or partner without accidentally cutting out your children. What if you wish to leave something for step-children too? Or protect the assets you've worked hard to build before the current relationship began? Without careful planning, your intentions can unravel in unexpected and sometimes upsetting ways. Especially where new siblings are concerned.
We'll walk you through the key legal tools to help you safeguard everyone you love and avoid conflict. It’s important to make sure your final wishes are legally watertight.
Why Blended Families Need Bespoke Legal Advice
If you pass away without a Will, it’s known as dying “intestate." This means that your estate will be divided according to strict legal rules. For married couples or civil partners, this usually means the surviving partner inherits a large portion of the estate. Potentially leaving nothing for your children from a previous relationship.
And here’s something many people don’t realise – step-children aren’t legally entitled to inherit anything unless you name them in your Will.
Even with a Will in place, the way it’s written matters. Poorly drafted Wills can be challenged, misinterpreted, or fail to protect everyone you intended to look after. That’s why getting specialist legal advice is vital when your family dynamic is more complex.
Key Planning Considerations for Blended Families
1. Wills That Reflect Blended Families
Creating a Will is essential, but in a blended family, it’s not just about ticking a legal box. You need a Will that genuinely reflects your situation and priorities.
You might wish to leave your estate to your spouse or partner, but still ensure that your children eventually benefit. Or you might be thinking about protecting your own children’s inheritance, if your partner remarries after your death.
When it comes to step-children that you treat as your own children, you may also want to make provision for them as well as your own children. But sometimes it can be just as important to exclude someone intentionally in your Will too.
Whatever your wishes, it’s crucial to express them clearly and legally to prevent your estate being divided in a way you wouldn’t have wanted.
2. Using Trusts to Protect Everyone’s Interests
Worried about your spouse having to choose between staying in the family home and your children getting their inheritance? That’s where trusts come in.
A Life Interest Trust can allow your partner to remain in the house for the rest of their life, with the assets passing to your children later. This provides security for your spouse while protecting your children’s long-term inheritance.
Trusts can also be useful where you want to delay access to inheritance until children reach a certain age. And you may have vulnerable beneficiaries who need long-term financial management. For example, there may be risks of future care home fees.
Trusts need to be carefully drafted and tailored to your circumstances. We’ll work with you to find the right solution.
Message the Private Client team at Wills&Probate@winstonsolicitors.co.uk
3. Inheritance Tax and Cohabiting Couples
Spouses and civil partners benefit from generous inheritance tax exemptions, but cohabiting couples don’t. This means that if you leave your estate to a partner you’re not married to, they may face a significant tax bill, even if you've lived together for decades.
We can advise you on reducing inheritance tax liability and making lifetime gifts safely.
Marriage or civil partnership might offer additional protection, but it’s still advisable to get sound legal advice when drawing up legal documents. And it’s especially important for people who own property or have children from previous relationships.
4. Avoiding Conflict in Blended Families
We all hope our loved ones will honour our wishes. But in practice, inheritance disputes are becoming more common. This can be particularly true in blended families where expectations and relationships can be more complicated.
Without proper planning, conflict can arise in unexpected ways, such as biological children feeling “cut out” of a Will. It can lead to disputes and family feuds. Concerns about undue influence on older people, or unfair treatment can also lead to conflict and long, drawn-out delays.
By having your plans clearly set out in a legally valid Will, you reduce the risk of future conflict and make things easier for those you leave behind.
5. Who Makes Decisions If You Can’t?
Future planning isn’t just about what happens after you die. It also involves preparing for a time when you may be unable to make decisions due to illness or accident. Lasting Powers of Attorney (LPAs) let you appoint trusted people to make decisions about your health and finances if you lose mental capacity.
In a blended family, this raises important questions, such as whether you want your current partner or an adult child from a previous relationship to manage your finances. And what happens if those people don’t get on. It can be difficult to balance feelings with practicalities.
We can help you choose the right attorneys and make sure your documents reflect your wishes. You can also include guidance or restrictions to make decision-making clearer.
Open Conversations Go a Long Way
You don’t need everyone’s agreement to make a Will or an LPA. It’s your decision at the end of the day. But talking things through with your family can make a huge difference.
It might feel awkward at first, but letting your children or partner know your intentions helps manage expectations and reduces the chances of arguments later down the line. It also gives them a chance to ask questions and feel reassured.
We can support you in these conversations if needed. Having an expert explain these things can help you to explain the reasoning behind your choices in a way that doesn’t feel like a sneaky attack.
Navigate Planning for Blended Families with Expert Legal Advice
Our Private Client team has extensive experience in helping blended families plan for the future.
We take time to understand your values, relationships, and priorities before offering bespoke advice. Whether you need a Will that protects your spouse and children fairly, trusts, inheritance tax advice or Lasting Powers of Attorney.
Whatever you need, we’re here to help
Planning ahead is crucial to avoid arguments in the future. Make sure your intentions are clear, your assets protected, and your family supported. Both now and in the future.
Contact the Private Client team at Winston Solicitors today to start planning. Call us on 0113 320 5000 or email @email.
