Estate Planning for Blended Families
Estate planning can be complex in any family. Organizing assets, finances, and family responsibilities can be time-consuming and require a lot of effort from all parties. However, it becomes particularly nuanced for blended families. When children from previous relationships or step-relatives are involved, a traditional will may not accurately reflect your actual wishes. Without a carefully designed estate plan, it’s possible for loved ones to be unintentionally left out.
Estate Planning For Blended Families
According to the U.S. Census Bureau, roughly one in six children lives in a blended family. Additionally, more than one in five married couples with children in the U.S. have children from previous marriages (Source). In South Carolina, blended families are more common than you think, but estate planning laws haven’t necessarily kept up with the needs of these family dynamics.
People assume that their spouse will inherit everything and take on the responsibility to distribute assets among the family. While your mind may include stepchildren, South Carolina’s default inheritance laws will not work that way. If there is no will or trust in place, state law typically divides assets between a surviving spouse and biological children, not necessarily stepchildren, even if they were raised in your household.
Second Marriages and Inheritance
Second Marriages come with their own legal and financial considerations. You and your spouse may have separate bank accounts, retirement accounts, investment accounts, vehicles, and real estate acquired before the marriage. How you choose to set up beneficiaries for those accounts, and how you take title and ownership of real and personal property, can impact your children’s inheritance.
If you don’t have an estate plan in place, the state’s default inheritance laws may not take note of children from your spouse’s previous marriage if there are any. If one spouse passes without a proper estate plan, the surviving spouse may inherit the majority of assets, with no legal obligation to leave anything to their stepchildren.
This becomes even more confusing in situations where both spouses have children from previous relationships. Without a clear estate plan, your children (biological or otherwise) could be unintentionally disinherited if your assets go to your spouse. This is because your spouse could decide to change their estate plan in the future and leave everything they have (including what they inherited from you) solely to their own children.
Protecting Everyone’s Interests
Ensure your estate plan reflects your intentions and protects all your family members with a few key strategies:
- Customized Wills and Trusts – These allow you to name specific beneficiaries and outline exactly what each person should receive, regardless of their relationship to you.
- Revocable Living Trusts – These can help you avoid probate and control how and when your assets are distributed.
- Prenuptial and Postnuptial Agreements – Something to keep in mind before starting a second marriage. These legal documents can outline expectations about property ownership and inheritance in the event of death.
- Beneficiary Designations – Be sure to regularly update the beneficiaries. This includes those listed on life insurance policies, retirement accounts, and other financial assets. This is to be updated once every three to five years.
- Healthcare and Financial Powers of Attorney – Appoint trusted individuals to make decisions on your behalf.
Protecting Your Legacy with Grand Strand Law Group
At Grand Strand Law Group, we understand that nothing matters more than protecting your family. We work with clients throughout Myrtle Beach and the surrounding area to create estate plans that honor their wishes while minimizing potential conflicts.
Whether you’re just getting started or updating an existing plan, Grand Strand Law Group offers comprehensive legal services for individuals across the Grand Strand. We work to make the process of starting your estate plan journey as smooth as possible. Give us a call at 843.492.5422. Learn about how we can help with estate planning now or in the future.