Tuesday, January 18, 2011

NEET Tips

NEET Tips answers questions posed online to the NEET website

What are factors to consider when estate planning for a blended family?

There are many factors to consider when working with a blended family because these situations have inherent conflicts built into the family relationships. The most obvious conflict is between the surviving spouse and the decedent’s children from a prior marriage. Questions to ask include:

•    How much access should the surviving spouse have to assets in the Marital and Credit Shelter trusts?
•    Should the surviving spouse be trustee, or a co-trustee, of these trusts?
•    Should all the decedent’s assets be tied up in these trusts for the lifetime of the surviving spouse, or should your children from a prior marriage receive something upon your death?
•    Do you intend to treat all of your children equally even though they come from different marriages?
•    Do you treat your stepchildren equally to your own children?
•    Should the surviving spouse have a power of appointment?

There are a lot of issues to go over when a blended family engages in estate planning. It’s best to consult a seasoned estate planning attorney who can point out the issues and the options available, because the conflicts can later tear a family apart if these issues are not handled well.

For more information on blended families, see the articles:

How to Avoid Disinheriting Your Children

A Family Meeting to Discuss Your Estate Plan