Estate planning is never one-size-fits-all. For blended families\u2014particularly when each spouse has children from prior relationships\u2014the process requires careful thought and strategic planning. While many couples begin with simple \u201cmirror wills,\u201d leaving everything to the surviving spouse and then equally to all children, this arrangement may not fully protect the interests of each spouse\u2019s biological children. Blended family estate planning looks at the balance between the needs of the surviving spouse and children from an earlier relationship.<\/p>\n\n\n\n
Consider the following scenario: A married couple in Illinois has a combined estate of $10 million. Each spouse has two adult children from a prior marriage. Their estate includes $2 million in real estate and $8 million in stocks and bonds. They have mirror wills: each leaves their share to the surviving spouse, and upon the death of the survivor, the estate is to be divided equally among the four children.<\/p>\n\n\n\n
At first glance, this seems fair and straightforward. But complications can arise. Suppose the husband dies first. His assets pass to his wife. However, the wife and the husband\u2019s children from his prior marriage have a strained relationship. The wife, now the sole owner of the full estate, is free to change her will. She might, whether intentionally or not, disinherit her late husband\u2019s children. Additionally, if she has a tendency toward excessive spending, the estate could be depleted before anything is passed on to the next generation. In either case, the husband\u2019s children may receive little or nothing of their father\u2019s legacy.<\/p>\n\n\n\n
As with all information on this website, this post is informational in nature and is not to be relied upon as legal advice. Consult with an attorney <\/a>for counsel specific to your circumstances. Palley Law provides prospective clients an initial consultation at no charge.<\/p>\n\n\n\n