Blended families - why it's important to have a will

In a recent study, the Society of Trust and Estate Practitioners (STEP) found that an increase in what are known as ‘blended families’ is leading to increased complexity in estate planning. Blended families are where there are children from previous relationships and, sometimes, children from the new relationship too . 

I have noticed this in practice with more families wanting to discuss how they can ensure both sets of children from previous relationships are well provided for. It is a balancing act to ensure that the surviving spouse or partner has sufficient assets to support them for the rest of their life, whilst also ensuring that the children receive a fair share of the assets and that they do not go to just one side of the family. 

Without a will, the intestacy rules for a second marriage say that the assets would pass to the remaining husband or wife on the first death and then on the death of the surviving spouse the estate would be divided equally between their own children. This means that without a will in place, the entire estate ends up going to the children of whoever is second to die. The first spouse’s children would receive nothing and to contest the application of the intestacy rules would incur costly and lengthy court proceedings. 

If the partners were cohabiting, any sole assets of the deceased would pass to their children. Depending on how assets are held, this could cause problems for the surviving partner. If property ownership is set up as ‘tenants in common’, this could lead to the surviving partner owning half of the property with their late partner's children, which would mean they would need to find funds to purchase their share if they wanted to remain in the property. However, if the deceased partner was the sole owner of the property, it would go to his children and the surviving partner would need to relocate. Without forward planning, the unexpected death of a partner could cause severe financial hardship. 

For both sets of children to have any benefit from the estate of a second marriage, wills must be in place. For cohabiting couples too, estate planning must be done. A solicitor will help explain how the ownership of the assets affects their distribution and once important decisions have been made by the couple, the solicitor can prepare the necessary wills to ensure a surviving partner and the children are well provided for. 

A standard mirror can also lead to issues for blended families. The majority of wills can be revoked, and a standard mirror will could be altered following the death of a spouse or partner. The surviving spouse or partner, having received the estate of their late spouse or partner, would be perfectly entitled to prepare a new will. In that will they could, if they so wished, decide that their estate passes solely to their own children, with their late spouse or partner’s children receiving nothing. 

For most families, property is their largest asset. Life interest trust wills are popular for blended families as they ensure that each partner’s share of the property passes to their own children. On the death of the first spouse or partner their share of the property is placed into trust. The surviving spouse or partner can continue to live freely within the home, but when they die their share of the property follows the terms of their own will. The terms of the trust are detailed within the will and cannot be altered by the surviving spouse or partner, which gives certainty that your own children will receive your share of the property.   

It is always important to plan for your loved ones but even more so when there is a blended family, in order that you can ensure the individuals you wish to benefit are the ones that actually do. The preparation of a will gives you certainty that your wishes will be followed. 

Spouses and partners should also also consider making a Lasting Power of Attorney so that those closest to you have the authority to make decisions on your behalf in the (hopefully unlikely) circumstance that you are unable to do so yourself. These documents need to be prepared in advance of them being required, and at the moment the Office of the Public Guardian is taking 20 weeks to register them. Think of a Lasting Power of Attorney as an insurance policy - we hope they will not be required but they are there should the worst happen. I come across many families who make contact when they are required urgently and applications cannot be fast tracked.  

If you would like to discuss your estate, your will or a Lasting Power of Attorney, please do not hesitate to contact Emma Greenland on 01268 824927 or emma.greenland@birkettlong.co.uk who will be happy to help.