Estate Planning for Blended Families in Oklahoma
While it might seem straightforward, estate planning for blended families can be quite challenging. This is especially true when both spouses have children from previous marriages. Even with the best of intentions, some family members could be left completely out of an inheritance unless proper and intentional estate planning takes place. If you are part of a blended family, keep reading below to learn more about the things you should consider during your estate planning.
Blended Families & Estate Planning: What Could Go Wrong?
Estate planning blunders involving blended families are much more common than you think. There is one scenario that is particularly common, and it often leaves some of the children with no inheritance at all.
Imagine a situation in which a couple remarries, and both spouses have children from a previous marriage. The couple may stay together for years and accumulate significant assets, such as a home, investment accounts, and other assets. They may have even talked about their estate plan and what they would want to happen in the event of one spouse’s death.
For most couples, the plan would look something like this. If one spouse dies first, the surviving spouse would inherit the entire estate. Upon the surviving spouse’s death, the estate would be split among all the children. However, that is not what ends up happening in many cases.
Instead, the surviving spouse may inherit the estate upon the first spouse’s death. Perhaps the surviving spouse remarries, or maybe they just update their estate plan later in life. When they die, the entire estate then goes to their beneficiaries, and the first spouse’s children often get left out of the inheritance altogether. This situation can be avoided with the proper planning and legal protections in place.
What Makes Estate Planning for Blended Families So Difficult?
One of the things that makes estate planning for blended families so difficult is the fact that Oklahoma’s estate laws are based on the traditional family structure. This includes Oklahoma’s intestate succession laws. So, if you die without a will, your stepchildren are not included as heirs under the law. You must have a plan in place to provide for your stepchildren.
Additionally, the emotional side of estate planning can make things difficult. You want to trust that your spouse would do the right thing, but sometimes issues can arise even unintentionally. You cannot assume that your family is protected simply because you and your spouse have talked about things. You must have a formal, legal plan in place to ensure that your wishes are carried out after your death.
Why a Will May Not Be Enough for Blended Families
A will is a valuable estate planning document, but it has limitations. Its limitations are even more obvious when used for blended family estate planning. A will cannot prevent your spouse from changing the plan after your death, so your assets may ultimately end up going to someone other than who you intended.
When it comes to estate planning for blended families, revocable living trusts can be a much better solution. A trust would allow you to provide for your surviving spouse while also protecting your children’s future inheritance. Additionally, reviewing your beneficiary designations on your 401k, IRA, or other financial accounts is extremely important. If you need help putting the right plan in place for your blended family, contact Helton Law Firm today to schedule a consultation.
