The concept of a "blended family" may refer to several things depending on who you ask. Figuring up a strategy that would accommodate a new spouse and children in addition to the children and other family members from a prior marriage might give some people the feeling of being overwhelmed. Yet, a little bit of preparation may go a long way. The following are some things to think about that can assist you in being prepared.

Early Signing Of A Prenuptial Or Postnuptial Agreement

In any marriage, it is important to begin communicating with one another as soon as possible. You should first have a conversation about your financial goals and how you feel about your assets, and then you should put those goals into a written agreement. This may help lessen the likelihood of disagreements and misunderstandings in the future. You and your spouse should consult with separate legal representation for any prenuptial or post-nuptial agreements.

Ensure Estate Planning Paperwork Fulfills Goals

Establish or revise your estate plan. Otherwise, your assets might be allocated by the state's default rules, which could run counter to the goals you have established for yourself. In the context of a blended family, this is extremely important. If you die without a will or trust, your assets would typically go to your spouse and then, if your children attain majority, to their children. Nevertheless, stepchildren are not entitled to inheritance unless you have officially adopted them. This is true regardless of whether or not a prenuptial agreement exists.

Check The Way Your Assets Are Titled

The method in which you title your assets can potentially throw even the most meticulously prepared will or trust into disarray. For instance, if you and your spouse own property as joint tenants with rights of survivorship, then upon your death, ownership of that property will immediately transfer to your spouse. This will occur regardless of the directives included in your will or trust. You should transfer the ownership of the assets into your own name or a tenants-in-common account with your spouse if you want to leave them to your children as a part of your inheritance. Transfer property ownership into your name if you want to pass it to your children.

Consider Life Insurance

Life insurance might be a handy method to care for your new spouse and younger children if you intend to leave a family company or other asset to your older children from a previous marriage. This is especially true if you have been married once before (or vice versa).

Your estate planning will become more complicated if you have a new spouse or children, but answering one simple question can help you determine how to proceed with your plans. Do you want your children from an earlier marriage to wait until their step-parent passes to obtain certain assets, such as the money from a life insurance policy? If you provide this liquidity to your children, it may assist in easing some of the tension that may build up as a consequence of having to wait for their inheritance till their step-parent has passed away. This is important from an emotional standpoint. This is of utmost significance if your new spouse is many years younger than you.

Life insurance is one method that may be used to transfer money to older children from a previous marriage while simultaneously providing financial support for younger children who are the product of a second or subsequent marriage. Insurance can be a simple and effective way to provide liquidity to pay the expenses you paid for your older kids and would have paid for your younger children if they were still living at home. This is especially true if your younger children have not yet started college or graduate school or if they have not yet moved out of the family home.

Introduce Your New Spouse And Your Adult Children To Some Of Your Trusted Advisors

You and your new husband may each work with a different financial, legal, and investment adviser. Think about introducing each other to your separate advisers so that both of you are acquainted with the people and organizations who could be able to help you in the future when you need their assistance. It is also important to include your adult children in the discussion and to introduce them to your consultants.

By attending family meetings, you may identify possible points of contention between you, your spouse, and your children or stepchildren. You may also voice your preferences on your estate plan at family gatherings. Having your objectives articulated in your own words might help reduce the likelihood that other family members will misinterpret your intentions in the future.