Blended families bring complications when it comes to estate planning. Indiana intestate law does not guarantee that your stepchildren or other family members will receive an inheritance. You need a proper estate plan to protect the people you care about after you pass away.
Just because your family only expanded after a second marriage does not mean that you care less about their inheritance. Continue reading this article for guidance on planning your estate after remarriage or divorce.
Marital trusts are an excellent way to protect your spouse and children from losing financial stability. The trust allows an estate to come under the full ownership of a surviving spouse after the other spouse’s death. When drafting a marital trust, you can decide how assets will pass to your surviving children after both spouses die.
Family trusts designate that all inheritance property goes into a combined trust when one spouse passes away. The surviving spouse then decides how to distribute the assets based on the needs of the children and other heirs.
Outright ownership by your spouse
A simple way to solve the estate plan problem is outright ownership. This gives all of your property to your surviving spouse to do with as they wish. If you trust your spouse to do right by your family, this is probably the easiest way to create an estate plan.
Bequests through a will
Finally, a will guarantees that your heirs get their inheritance. Once you pass away, your assets distribute according to the specifics of your will.
Estate planning with blended families is slightly more complex. However, with some planning you can ensure the people you care about to receive their rightful inheritance.