Wills for blended families: securing inheritance for all children

Common pitfalls in estate planning for blended families

Many parents mistakenly assume their children will automatically inherit part of their estate. However, several situations can arise in blended families that may leave children unintentionally excluded. Here are three common scenarios:

1. No Will in place:
   If you die without a Will, your estate will be distributed according to the intestacy rules. These rules favour spouses and biological/adopted children but make no provision for stepchildren. In many cases, your entire estate would pass to your spouse. When they die, their estate (including assets inherited from you) could pass solely to their own biological/adopted children, or even to a new spouse if they remarry. In both cases, your children from a previous relationship would receive nothing.
2. Will in place leaving everything to your spouse:
   Some people rely on their spouse to “do the right thing” and divide assets among all children, including stepchildren, when they die. However, there is no legal guarantee this will happen. Your spouse could fall out with your children, remarry, or change their Will, leaving your children out of the inheritance. Moreover, your spouse may never get round to making a Will or a Will they have made may not be found at the relevant time. The intestacy rules would then apply and as we’ve seen above, these do not make provision for stepchildren.
3. Mirror Wills and changes after death:
   Couples often make mirror Wills, leaving everything to the surviving spouse and then to all children, including those from previous relationships. Yet, there is nothing stopping your spouse from altering their Will after your death. They could exclude your children from a previous relationship, either due to personal financial reasons or changing family dynamics. Worse, if your spouse were to remarry, this would automatically revoke any previous Will and intestacy rules would then apply to their estate until they made a new Will post-marriage.

A Tailored Solution for Each Family

Estate planning is never “one-size-fits-all”. Whilst some families may benefit from a Life Interest Trust, others may find a Discretionary Trust more flexible. Every family is different, and it’s essential to seek legal advice to determine the best approach for your situation and to avoid family disputes after your death.

Leaving everything to your children outright might seem like an option, but this can lead to financial challenges for your surviving spouse and an increased inheritance tax liability. It’s crucial to strike the right balance between providing for your spouse and ensuring your children’s inheritance remains secure.

Final thoughts

While you may trust your spouse to “do the right thing,” it’s wise to make sure your Will is robust and reflective of your wishes. Taking the time to set up proper safeguards can prevent your children inadvertently receiving nothing from your estate.

At Blake Morgan, we understand the importance of creating a Will that works for you and your family. Our Succession and Tax team can help put the right measures in place, giving you certainty, as opposed to relying on presumptions, when it comes to inheritance and your estate.