Estate Planning for Blended Families: Ensuring Fair Inheritance for All

In Texas, estate planning is the process of organizing your assets to ensure they are managed and distributed efficiently if you pass away or become incapacitated. You will have many important decisions to make regarding financial assets, property transfers, and who you will designate to make important decisions on your behalf if you are ever unable to do so.

Today, blended families are more common than they ever have been. While these family situations are a blessing, they can also create some complications when creating your estate plan. Below, our Houston estate planning attorney outlines some of the most important factors to consider when creating your plan to protect your family.

Why is Estate Planning So Important for Blended Families?

The term ‘blended family’ refers to a situation in which two people remarry or live together with children they have from a previous relationship. The spouses in these situations become stepparents to the children they live with but are not biologically related to. Siblings then become step-siblings or half-siblings. If two children are in no way biologically related, they are step-siblings. When two children share one parent but not the other, they are half-siblings.

Many parents in blended families wonder if their stepchildren have any legal inheritance rights. In Texas, the answer is no. The intestacy laws in the Lone Star State make no stipulations for stepchildren. For parents in blended families, this makes estate planning critical to ensure that all of their children are cared for and supported in the future and that people do not receive inheritances that were not intended for them. To ensure that all of your loved ones are protected and that your final wishes are respected, there are some important elements to include in your estate plan.

Openly Communicate

Communication is an important part of estate planning for any family. For blended families, it is even more critical. It is important to discuss your wishes with your spouse, children, stepchildren, and anyone else who has an interest in your estate plan. Making sure everyone is involved in the planning process can help manage expectations, address concerns, and reduce the potential for conflicts in the future.

Updating Beneficiary Designations

You may have retirement accounts, life insurance policies, and bank accounts that have a beneficiary designation or a payable-on-death (POD) or transfer-on-death (TOD) designation. During the estate planning process and at regular intervals afterward, it is critical that you review these designations. Overlooking them can result in unintended consequences, such as leaving an inheritance for your former spouse instead of your children, stepchildren, and current spouse.

Draft a Will

Creating a comprehensive will is one of the first things many do when they start estate planning, as these legal documents often lay the foundation for the rest of the plan. Many people understand that a will allows them to outline how they want their assets distributed after they pass away. However, a will can do so much more than just this. 

In your will, you can designate a personal representative, the person who will manage your estate, while also naming a guardian for any minor biological children and stepchildren. Designating a guardian for minor children is also more complicated in blended families. It is important to consider the dynamics between the biological parent, stepparent, stepchildren, and extended family members. Texas places very strict laws on wills, so it is important to work with a Houston estate planning attorney who can ensure your final wishes are fulfilled.

Establish Trusts

Trusts are one of the most important estate planning tools for blended families. A trust can hold and distribute property for specific beneficiaries while allowing you to retain control of distribution methods and timing. For example, after establishing a trust, you can provide for your current spouse throughout their lifetime while protecting property for distribution to your stepchildren and biological children after your spouse passes away. There are many different types of trusts in Texas, including revocable and irrevocable trusts. 

Plan for Long-Term Care

The cost of long-term care, should you or your spouse ever need it, is very expensive. It can cost $100,000 a year or even more. Long-term care insurance and Medicaid planning should always be a part of your estate plan. Long-term care planning is extremely complex, and there are many rules and regulations associated with it. You should always work with an attorney who can ensure you and your family have the protection you need.

Update Advance Directives

Advance directives such as powers of attorney, do-not-resuscitate orders, and directives to physicians, family, or surrogates are all important for blended families. These directives outline your wishes for the certain types of care you do or do not want to receive. They are particularly important if you become incapacitated and cannot express your wishes yourself. Incapacitation can result from a physical or mental disability, but it can also result in something more minor, such as being put under general anesthesia during surgery. With an advance directive, you appoint someone you trust to make decisions on your behalf in these types of situations.

If you do not already have these important legal documents in place, now is the time to create them. If you have already created them, it is just as important that you review them to ensure they still reflect your wishes. For example, if you drafted an advance directive during a previous marriage, you may have designated your then-spouse as your agent and may no longer want them making decisions for you if you cannot make them yourself.

Our Estate Planning Attorney in Houston Can Help

Estate planning always has the potential to become complex. Those in blended families, however, face even more unique challenges. At Integrity Law Group, PLC, our Houston estate planning attorney can help you overcome any difficulties that arise and ensure you have a plan that protects you and your loved ones. Call us today at (832) 280-9576 or fill out our online form to schedule a meeting with our seasoned attorney and get the legal help you need.

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