Estate Planning for Blended Families: What You Need to Know
Estate planning should be a top priority for everyone, but it’s particularly important for blended families in California. A significant number of marrying couples bring children from previous relationships into their new marriage, creating a new blended family. The estate planning needs of a blended family are often somewhat more complex than what other families may need, which is why it’s important to loop in an estate planning lawyer in the Inland Empire as early as possible.
At Moga Law Firm, we understand the complications that arise with blended families’ estate planning needs and California’s community property laws. Attorney Scot Thomas Moga brings over 25 years of experience to every case he accepts, advocating passionately for his clients and crafting estate plans that meet their unique needs. Call our estate planning law firm at 909-931-2444 to schedule a consultation right away.
Why Blended Families Have Specific Estate Planning Needs
Estate planning for blended families isn’t just about distributing assets. You have to carefully balance relationships, expectations on all sides, and fairness in a way that will preserve family relationships long after you’re gone.
When a couple gets married after having already had children and built their assets, this often results in problems when one spouse passes away and the couple hasn’t done any estate planning. Problems we often see include:
- Surviving spouse inherits all or most of the estate, leaving children from the decedent’s first marriage with nothing—regardless of what the decedent would have wanted
- Stepchildren who are unintentionally excluded because of intestate succession laws
- Family homes and businesses that become a point of contention between stepparents and grown stepchildren, all of whom feel entitled to the home or business
Intestate succession laws determine who inherits your assets if you pass away without creating a will. Unless stepchildren are specifically named in a will or otherwise included with the help of an estate planning attorney, they often receive nothing. The law doesn’t account for emotional bonds or how long a family unit has been together. It just divides assets in a way that legislators assume to be fair.
The loss of a loved one is already painful. Family relationships fraying and dissolving over assets makes this hard time even worse. Clear planning with an estate planning lawyer can help you avoid this outcome.
California’s Community Property Rules
Under California state law, assets bought or otherwise acquired during a marriage are typically considered community property. If one spouse brings in an asset to the marriage, it is typically considered separate property—unless it is converted into community property. Consider a situation where one spouse owns a paid-off home prior to marriage. However, during the marriage, they use community funds for its upkeep, and it becomes community property. If the couple did not work with an estate planning attorney to outline their expectations and wishes, the surviving spouse may retain full ownership even if the decedent wanted the home to pass to their children. A well-drafted estate plan can avoid these painful situations.
Estate Planning Tools to Consider
There are numerous estate planning tools you may utilize to ensure that your assets are handled appropriately after your passing. Your estate planning guide may recommend:
- Will that specifies how assets are to be transferred and outlines guardianship wishes for minor children
- Revocable living trust that can take ownership of assets and pass them along to named beneficiaries without going through probate
- Prenuptial and postnuptial agreements that specify how assets are to be managed in the event of one party’s death
- Beneficiary designations that specify how life insurance, retirement accounts, and POD accounts are to be passed along upon your death
- Powers of attorney and advance health care directives to ensure that your healthcare preferences are respected and your financial needs are met if you are incapacitated
Balancing Fairness and Family Dynamics
When you work with the right attorney, they’ll be able to understand your specific needs and the type of family relationships you maintain. This allows you to handle your assets as you wish without causing rifts in the family.
Explore Your Estate Planning Options With Moga Law Firm
If you’re ready to start building your estate plan, we’re here to help. Call our estate planning law firm at 909-931-2444 or connect with us online to discuss your needs.
Scot Thomas Moga, a dedicated attorney in San Bernardino & Riverside Counties who represents clients in the many types of personal injury, workers’ compensation and estate planning cases.
