The family dynamic in America has changed drastically over the years. Nowadays, blended families are as common as the traditional nuclear family. However, many of today’s laws are still geared toward the traditional family. Because of this, special attention needs to be paid in estate planning.
While basic estate planning principles are the same for any family, there are some aspects that require more steps for blended or non-traditional families. There are many scenarios that can prohibit surviving spouses or partners from inheriting the assets of the deceased if estate planning documents are not carefully drafted. For example, in the case of a nuclear family, if one spouse dies, that person’s estate is automatically transferred to the surviving spouse unless otherwise specified. But for unmarried couples, this is not the case. If one partner dies, but there are no binding documents between the couple, then it is highly unlikely that any of the deceased’s assets will be passed to the surviving partner; unless the State has passed legislation covering the issue.
Another scenario could involve a couple where each spouse has children from previous marriages. In the event that one spouse dies, his or her estate might be passed to the surviving spouse but then the surviving spouse might prevent the deceased’s children from seeing any of the estates. This is especially prevalent among families where the spouse and the step-child did not necessarily get along.
These scenarios are common, but not all encompassing. There are many others that can prevent a person’s estate from being distributed as intended. This means that when devising a will, power of attorney, a trust, or any other estate planning documents, your family structure needs to be taken into account and explicit instructions should be included to allocate your estate. Controversial and difficult topics especially need to be incorporated. This can include, but is not limited to illegitimate children or affairs. If done tactfully and properly, non-traditional and blended families can work around the laws that are so biased toward nuclear families, but all aspects, even uncomfortable ones, need to be addressed.
Not only is it important to think about what should go into your estate planning documents, but it is also imperative to decide who will assure that your assets are distributed as planned after you have passed. If you assign a family member as an agent to your estate, then that person might deviate from what you had intended by ignoring your outlines and distributing your assets as they see fit. It may be best that the agent designation go to an intermediary. That way there is no bias in how the estate is distributed.
One worthwhile mean to estate planning is life insurance. This can be good for unmarried couples and blended families. Having life insurance could prevent a family from liquidating a family asset for the purpose of balancing an estate.
Estate planning should be implemented more among all types of families, but extra steps and consideration need to be taken for non-traditional and blended families. Having a comprehensive plan set in place before your death can make things easier for your family after you have passed away.
