Minnesota Estate Planning Tips for Blended Families
It is clear to Minneapolis and St. Paul area estate planning attorneys that the modern American family comes in all shapes, sizes, colors, and configurations. This creates unique circumstances when creating wills and trusts, writing prenuptial agreements and putting long-term care plans in place.
There is always potential for conflict when it comes to estate planning in general, but the added element of a blended family can compound problems. For this reason, it’s a great idea for anyone in a blended family or non-traditional relationship to discuss their options with an Twin Cities area estate planning attorney to ensure you are planning with such complexities in mind.
In preparing for this conversation and its outcome, it makes sense to consider the following:
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What role will your new spouse play in your estate? What role will your children play? Those who are married later in life may choose to leave their entire estate to their biological children, while the spouse does the same. In other situations, both spouses may choose to leave their assets to the surviving spouse or to do a combination of both. Of course, many step-parents choose to consider their non-biological children in the estate planning process as well.
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It may seem unlikely now, but there is potential for a spouse who receives your assets to disinherit your biological children. To avoid this, beneficiaries (and their inheritance) should be clearly and legally outlined in your will. Likewise, children could move to disinherit the new spouse, so this provision will also protect him or her.
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Use your will to make your wishes known when it comes to the inheritance of specific assets. Your estate planning attorney can help you to identify what these are, as it is very easy to overlook a particular asset, not realizing it holds value (monetary or sentimental).
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To remove concerns regarding what a spouse, child, or step-child might do should you be unable to oversee your own finances, work with the estate planning attorney to set up a living trust, powers of attorney, and other legal documentation before they become necessary.
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Review any retirement accounts, mutual funds, insurance policies, etc. to ensure they are kept up to date as your familial status changes. For example, you may need to remove a former spouse in favor of your current one, add step-children as beneficiaries, or amend your beneficiaries with the birth of a new child.
Probably the most important aspect of making these choices is to ensure they truly reflect your preferences and wishes, as well as applicable laws here in Minnesota. Because there are a number of special considerations in these types of situations, be sure to choose an estate planning attorney who has significant experience working with blended families.
Here at StoneLAW, PLLC, we are happy to work with you and your extended family to ensure your have the right plans in place should the unthinkable happen. Just call 763-231-7884 and ask to schedule a free consultation to discuss your blended family situation.