Songs and poems are written about finding love the second time around. But sometimes, that second chance at love comes with something else: a new family.
That can make things like estate planning more complicated. Let’s look at some things to consider.
Stepchildren aren’t recognized as heirs
California defines heirs as individuals directly related to the deceased, either by blood or adoption. Unless the stepparent legally adopts their stepchildren, they will not fall into this category. Therefore, if you were to die without a will, your stepchildren would have no inheritance rights under the state’s intestate succession laws. Conversely, if you were to die before your spouse, your biological children may not inherit everything you wish to pass on to them.
To ensure that everyone in your blended family is provided for and to avoid inadvertently disinheriting anyone, there are some things to consider:
- Creating a will allows you to name your children and stepchildren as beneficiaries explicitly. This lets everyone receive a portion of your estate according to your wishes.
- Establishing a trust can help ensure that your assets are managed and distributed according to your detailed instructions, providing financial security to your loved ones.
- Reviewing and updating beneficiary designations on your financial accounts, life insurance policies and retirement plans will let your children and stepchildren receive the intended benefits directly.
- Because California is a community property state, properly identifying what assets were obtained during the marriage and those acquired before the marriage or through an inheritance or gift is critical for estate planning.
It’s imperative for blended families to balance the interests of the current spouse with those of the children from previous relationships. Regularly updating your estate plan to reflect life changes can help ensure that your plan is aligned with your current wishes.
