BLENDED FAMILIES AND ESTATE PLANNING ISSUES
Societal changes over the past 50 years have resulted in dramatically different definitions of family. The average marriage now lasts only 7 years; 50% of marriages end in divorce. Approximately 75% of people who divorce will re-marry. Many of these divorced and re-married couples have children from their previous marriages, then add to the family once together. The new phenomenon now known as "blended families” is having a definite impact on estate planning, and has complicated the methods for handing down family assets from parents to children.
Families are seeking specialized legal and estate planning advice more often than ever before to be sure of how to proceed with distributing assets to their surviving children. It is necessary for spouses to:
There are a number of areas where distribution of assets will be impacted by each spouse’s previous life experience. Some of the most common sources of estate planning challenges for blended families include Gift Planning and Retirement Assets.