According to statistics, about 75 percent of the 1.2 million Americans who divorce each year eventually remarry. This will result in blended families. Often there are a lot of problems with getting blended families to come to terms. This can be difficult when you are trying to estate plan. There are plenty of strategies that these blended families can use.
Usually married couples will leave all of their assets to each other. They do this in a will. This way if one spouse were to pass away, the other spouse would get the right to their property. The issue that occurs here for blended families is when a husband or wife does not want to leave any of their assets or property to children from a previous relationship. This may happen if one spouse has not seen that side of their family in years, therefore leaving them feeling as if they do not need to leave anything for them. Setting up a trust is a way to provide for your spouse in their lifetime. When your spouse passes then everything in the trust can go to your children. It’s a great way to not leave anybody out.
If you have a complex family web, life insurance or a retirement account is another great way to provide for your loved ones. You can leave most of your money to your spouse, but also set up life insurance for the kids. Your policy can name them as beneficiaries. IRAs and 401(k)s are not passed down through your will. It is goes directly to your beneficiaries. If you have had a divorce, you definitely want to make sure this is updated, that way it does not go to your ex.
A living will and power of attorney is a way in which you can make it known what you wish to happen to you if you become terminally ill. Power of attorney will designate someone to make medical and financial decisions for you in event that you are unable to make it for yourself. You always want to make sure the person that you choose is level-headed, and will want what you want. You will definitely want to let you family know what you plan in head of time so that there are no surprises. Often a family might argue about what they think is best for you.
If you decide not to estate plan at all, then everything will be divided based on your state’s law. You won’t have any say over the property split. This is the reason why estate planning is so important. You will definitely want to hire an experienced lawyer to help you through your estate planning. Palacios Law Group is here to answer any of your questions.