In the modern world, many people have stepchildren that they want to include in their estate plans. This was not always the case, of course. Over time, families have evolved. unfortunately, the law has not always evolved fast enough to keep pace with the modern family. People who want to make their stepchildren a part of their estate plans have to take extra steps to make that happen.

For many people, one of the more important aspects of their estate plans are their retirement savings. You can name someone as a beneficiary on a retirement savings account and when you pass away, whatever is left in the account goes to the beneficiary. However, it can get a bit complicated if you want to name a stepchild as a beneficiary. For a 401(k) account, you need the permission of your spouse to name a stepchild as a beneficiary. For an IRA, that is not an issue; you are free to name whoever you want.

There are many other ways in which the law treats stepchildren differently. Talk to an estate planning attorney about what you need to do to leave an inheritance to your stepchildren.

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Ryan M. Denman and Dennis D. Duffy

Duffy Law Office

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Estate planning has a slew of benefits, but what clients (and their families) find really valuable is peace of mind.  Peace of mind promotes family relationships, health, and positive communication.  Here are the 4 ways an estate plan creates peace of mind.

1.    Blended Families

When your second (or third) spouse and children from previous relationships all know that you’ve done estate planning and that they’re protected, relationships can be fostered.

2.    Long Term Care Covered

If you’ve planned ahead and have arrangements to pay for your long term care through Medicaid, private pay, or long term care insurance, both you and your loved ones will have peace of mind, knowing that they don’t have to decide between your care and financial ruin.

3.    Your Wishes are Documented

When you have an up-to-date, comprehensive estate plan, your wishes are documented; both you and your loved ones have peace of mind.  There is no fighting over what you would have wanted regarding a living Will, organ donation, final arrangements, trust helper roles, and asset distribution.

4.    Beneficiaries Protected

You and your loved ones will sleep better at night, knowing that your beneficiaries and their inheritances are protected from addictions, spendthrift behavior, bad decisions, divorce, bankruptcy, lawsuit, malpractice claims, second spouses, and medical crisis.

We appreciate you following us and value your comments and input. Please provide your thoughts by using the comments section on our blog page.

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Thanks again.

Dennis D. Duffy

Duffy Law Office

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

While it’s important for everyone to handle their estate planning affairs, it’s especially important for blended families to do so.  Comprehensive estate planning makes it possible for everyone to be fully protected.  If ignored, there will be trouble in the future, guaranteed.  Take a look at the following information, to learn more.  If you have any questions, or if you’d like to discuss blended families planning techniques, contact an estate planning attorney.

Are You in a Blended Family?

If you’re in a second (or third) marriage and either you or your spouse has children from another relationship, you are in a blended family; and, you need to reevaluate your estate planning needs. With the help of an estate planning attorney, you can identify your estate planning goals and find a way to make your goals happen.

Your Children May Be Unintentionally Disinherited

It’s important to have the right planning techniques in place, so that you can ensure that your property distribution wishes are respected.  If you don’t plan correctly, your own children may be disinherited, unintentionally.  This can create unnecessary stress and upset and may also mean that your children don’t have the assets that they need.

Work with an Estate Planning Attorney

It’s important to hire an estate planning attorney when handling your affairs, especially when your plan requires extra complexity because you have a blended family.

An attorney will be able to better explain all of your options so that you make the right choices.  He or she will also be able to explain the influence that certain planning decisions may have on your future.  You need to make sure that you’re aware of all of the possibilities.

Don’t ignore the need to plan for your family.  If you’d like to discuss planning techniques for blended families, consult with a qualified estate planning attorney.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

The statistics on marriage and remarriage in the United States reveal the fact that the typical marriage is almost as likely as not to end in divorce. In addition, about three out of every four people who do get divorced wind up getting remarried, and in the majority of cases one or both of them have children from a previous marriage.

When you are getting remarried and you have children from a previous marriage or marriages you are faced with some estate planning challenges. Traditionally marriage is a total and complete partnership, but second and third marriages can be more complicated, with one or both parties entering into the union with significant assets. So when you have the combination of children from a previous marriage and personal assets that you would like to protect, the solution is to enter into a prenuptial agreement.

Once your personal assets have been legally defined you have the freedom to leave them to your children. But what about your new spouse? Of course you want to provide for your husband or wife in the event of your death, and you can satisfy both of your objectives through the creation of a qualified terminable interest property trust.

With these trusts your spouse receives the trust income for life, and depending on the exact terms of the trust agreement he or she can also tap into the principal under some circumstances. But you name beneficiaries of the trust upon its creation, and these would presumably be your children. Your named beneficiaries inherit the trust assets upon the death of your surviving spouse, so with the QTIP you do provide for your spouse for life but he or she does not decide who gets the remainder.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Times have changed, and in the new millennium, blended families now outnumber traditional nuclear families. The number is likely to grow, based on current statistics and trends, and blended families face unique social and economic, as well as, estate planning challenges.

There are numerous organizations and support groups dedicated to helping blended families with these challenges, but without proper legal planning, your ex-spouse would likely be appointed by the probate court to manage the inheritance you leave to your children as surviving parent/guardian. If your children later predecease your ex-spouse and they are living single and childless at that time, the ex-spouse would inherit the assets as the next-of-kin of the children.

An Attorney experienced in Estate Planning can discuss your options with you. Planning for a Blended Family can sometimes be complex but with an experienced Attorney on your side you can rest assured know your planning is in order.

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Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.