Tips for Planning for Blended Families
August 14, 2015
As a result of relatively high divorce rates and better longevity these days, blended families now outnumber traditional families. Divorce and remarriage has the tendency to increase the number of individuals involved in an estate, which can lend itself to complexity if not properly planned for.
With more individuals at the table for an estate, there is also high potential for acrimony and suspicion. An individual who is remarrying needs to understand the importance of disinheriting a former spouse. If this is not done, that spouse’s rights can trump whatever it outlined in a will.
One way to protect a blended family is to use an LTD trust or a QTIP trust. An LTD trust is beneficial for protecting the inheritance of children, while a QTIP trust helps to provide lifetime income for the new spouse. After getting remarried, carefully review all of your beneficiary designations and set up a consultation with an attorney to get your questions answered.
