Estate Planning for Blended Families

Protecting Your Spouse, Your Children And Your Family’s Future

Modern families are more diverse than ever before. Second marriages, long-term relationships, children from previous relationships and stepchildren are now common. While blended families bring many rewards, they can also create complex legal and financial issues when someone dies. That is why estate planning for blended families requires particular care.

Many people assume that making a simple Will is enough. Unfortunately, that is often not the case. Without careful estate planning, it is possible for:

• children from a first relationship to inherit far less than intended
• a surviving spouse to become financially insecure
• stepchildren to receive nothing
• family homes to pass outside the family bloodline
• inheritance disputes to arise between surviving family members.

At Bonallack & Bishop, our private client solicitors regularly advise individuals, couples and families on estate planning for blended families. We help clients prepare Wills, trusts and inheritance tax planning that reflect modern family life while reducing the risk of future disputes.

Whether you are marrying for the second time, have children from different relationships or simply want to make sure your estate passes exactly as you intend, obtaining specialist legal advice can make a significant difference.

For FREE initial advice on the phone about wills, inheritance tax or any other aspect of estate planning, simply call our Solicitors on FREEPHONE 0800 1404544 for an initial no strings attached conversation
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What Is A Blended Family?

A blended family usually means a family where one or both partners have children from previous relationships. Examples include:

• second marriages
• civil partnerships following divorce
• widowed spouses who remarry
• unmarried couples with children from previous relationships
• families where children live together but have different biological parents.

But every family is unique. That means every estate plan should also be tailored to the family’s individual circumstances.
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Why Estate Planning Is More Complicated For Blended Families

Traditional estate planning often assumes that parents share the same children. That assumption no longer reflects many families.

For example:

A husband leaves everything to his second wife believing she will eventually leave whatever remains equally between all the children.

Unfortunately, life does not always work that way.

The surviving spouse may:

• remarry
• change their Will
• spend much of the estate
• require expensive residential care
• leave everything to their own children
• become influenced by others later in life.

As a result, the children of the first spouse to die may receive little or nothing.

This is one of the most common estate planning problems affecting blended families.

According to the private client solicitors at Bonallack & Bishop, many inheritance disputes could have been avoided if proper estate planning had been carried out while both partners were alive.
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Why A Standard Will Is Often Not Enough

Many couples make “mirror Wills” leaving everything to each other. Mirror Wills can work well for couples who have the same children.

However, they are often less suitable for blended families. This is because, after the first death, the surviving spouse remains free to change their own Will unless other legal arrangements have been put in place.

A Will only controls what happens to your own estate when you die. It does not usually prevent another person changing their own Will later.

If protecting children from previous relationships is important, additional planning may be required.

Estate Planning For Blended Families – Common Mistakes

Every year we advise clients who believed their existing Will would protect everyone fairly, only to discover that it would not. Some of the most common mistakes include:

• assuming a spouse will “do the right thing” later
• failing to update a Will after remarriage
• relying on the intestacy rules
• overlooking jointly owned property passing automatically by survivorship
• forgetting to update pension death benefit nominations
• failing to review beneficiary nominations on life insurance
• not considering the effect of future remarriage or care fees
• treating estate planning as a one-off exercise rather than reviewing it as family circumstances change.

According to the private client solicitors at Bonallack & Bishop, identifying these issues during your lifetime is usually far easier and considerably less expensive than trying to resolve family disputes after death.
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Is A Will Enough For Blended Families?

Sometimes it is, but often it is simply not enough.

A professionally drafted Will remains one of the most important estate planning documents.

However, blended families frequently benefit from combining a Will with other planning tools, including:

• life interest trusts
• discretionary trusts
• property protection trusts
• lifetime gifts
• inheritance tax planning
• carefully drafted letters of wishes
• pension and death benefit nominations.

Choosing the right combination depends upon:

• family circumstances
• ages of children
• financial needs
• ownership of property
• business interests
• inheritance tax exposure.

Every family is different.
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What Is The Best Type Of Will For A Blended Family?

There is no single answer to this one. The best Will depends on your family, assets and objectives.

However, many blended families benefit from Wills containing trusts rather than simple gifts.

Common options include the following:

• Simple Will

Suitable where:

• there are modest assets
• there is complete agreement between family members
• there are no significant concerns about protecting children’s inheritance.

• Life Interest Trust Will

One of the most popular options. This can allow:

• a surviving spouse to continue living in the family home
• income from investments to be paid to the surviving spouse
• the capital to pass later to children chosen by the person who created the trust.

This can help balance the needs of a surviving spouse with protecting children’s inheritance.

• Discretionary Trust Will

These legal vehicles are useful where flexibility is important.

For example:

• vulnerable beneficiaries
• disabled children
• concerns about divorce
• concerns about bankruptcy
• complex family relationships.

Trustees decide how assets should be distributed, taking account of changing circumstances.
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Estate Planning For Blended Families After A Second Marriage

Second marriages are one of the most common reasons people seek specialist estate planning advice. That is because marriage has important legal consequences.

Under section 18 of the Wills Act 1837, marriage generally revokes an existing Will unless the Will was made in contemplation of that marriage.

This means that someone entering a second marriage should almost always review their estate planning.

Failure to do so can produce unexpected consequences.

For example:

• an old Will may no longer be valid
• children from a previous relationship may lose expected inheritances
• intestacy rules may apply instead.

If you remarry without making a new Will, your estate may be distributed under the Administration of Estates Act 1925, rather than according to your wishes. For blended families, that can produce results that nobody intended.
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How Do Blended Families Handle Wills?

There is no standard solution. Instead, experienced private client solicitors usually begin by asking questions such as:

• Who should be financially protected first?
• Should the surviving spouse be able to stay in the family home?
• Should children inherit immediately or later?
• Should all children inherit equally?
• Should stepchildren receive anything?
• What happens if the surviving spouse remarries?
• Are there business assets?
• Is inheritance tax likely?

Only after understanding those objectives should suitable legal documents be prepared.

According to the private client team at Bonallack & Bishop, the best estate plans are those that anticipate future changes rather than simply dealing with today’s circumstances.
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Protecting Children From Previous Relationships

One of the most common concerns is ensuring that children from an earlier relationship eventually receive an inheritance.

Many parents worry that if they leave everything outright to their new spouse:

• the estate could pass elsewhere
• relationships between surviving family members may deteriorate
• children could unintentionally be disinherited.

A carefully drafted trust can often help balance these competing interests.

For example:

If you want your spouse to remain financially secure during their lifetime, but you also want your children ultimately to inherit your share of the family home, then a life interest trust may achieve both objectives.

Instead of forcing a choice between your spouse and your children, appropriate estate planning can often protect both.
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Can Stepchildren Inherit If There Is No Will?

This is one of the most misunderstood areas of inheritance law. The short answer is:

Usually no.

Stepchildren are not automatically entitled to inherit under the intestacy rules simply because they were treated as part of the family.

If someone dies without leaving a valid Will, their estate is distributed under the Administration of Estates Act 1925.

The statutory rules prioritise:

• spouses and civil partners
• children
• other blood relatives in a prescribed order.

Unless a stepchild has been legally adopted, they are generally not treated as the deceased’s child for intestacy purposes.

This can come as a considerable shock to families who assumed all children would be treated equally.

For that reason alone, making a professionally drafted Will is especially important for blended families.

• Are Stepchildren Entitled To An Inheritance?

This is one of the questions we are asked most frequently. The answer depends entirely on the circumstances.

If there is a valid Will

If you leave a valid Will, you decide who inherits your estate. You may choose to leave assets:

• to your spouse only
• to your own children
• to your stepchildren
• to all children equally
• in different proportions
• through one or more trusts.

There is no legal requirement to leave part of your estate to a stepchild simply because they are your spouse’s child.

• What Happens If There Is No Will

Here, the position is very different.

A stepchild does not automatically inherit under the intestacy rules unless they have been legally adopted.

This often surprises families who have lived together for many years and regard all the children as equal members of the family.

A professionally prepared Will allows you to make your own decisions rather than relying upon the statutory intestacy rules.
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How Do I Protect My Estate From Stepchildren?

This question often arises after a second marriage. In reality, it usually means:

“How do I make sure my own children eventually inherit what I want them to inherit?”

Many people are not trying to exclude stepchildren unfairly. Instead, they want to balance the interests of:

• a current spouse
• children from a previous relationship
• children of the current relationship
• stepchildren
• future grandchildren.

There are a number of ways this can be achieved. These may include:

• carefully drafted Wills
• life interest trusts
• property protection trusts
• discretionary trusts
• lifetime gifts
• pension nominations
• declarations of trust for jointly owned property.

According to the private client solicitors at Bonallack & Bishop, the objective is usually not to protect assets from stepchildren, but to ensure assets ultimately pass to the people you intend.
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How To Exclude Stepchildren From A Will

English law generally allows individuals to decide who should inherit their estate.

This principle is known as testamentary freedom. That means you may choose not to leave anything to a stepchild.

However, the decision should never be made lightly.

An unexpected exclusion may increase the risk of family conflict after your death. It may also increase the likelihood of a legal challenge in certain circumstances.

Good legal advice can help you understand:

• whether exclusion is appropriate
• whether an explanation should be recorded
• whether alternative arrangements might better achieve your objectives.

Sometimes a carefully drafted letter explaining your wishes can reduce misunderstandings later.
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Can A Stepchild Contest A Will In England And Wales?

Yes, they can. However, the answer is more nuanced than many people realise.

Simply being disappointed with the contents of a Will does not give someone the right to overturn it.

A Will may potentially be challenged where there are recognised legal grounds, including:

• lack of testamentary capacity
• undue influence
• fraud
• lack of proper execution
• lack of knowledge and approval.

In addition, some individuals may bring a claim for reasonable financial provision under the Inheritance (Provision for Family and Dependants) Act 1975.

Whether a stepchild can bring such a claim depends upon the individual facts. For example, the court may consider whether:

• the stepchild was financially dependent upon the deceased
• the deceased treated them as a child of the family
• there were competing claims from other beneficiaries
• the size of the estate justifies additional provision.

Each case depends upon its own facts.

A stepchild is not automatically entitled to inherit simply because they were part of the family. Equally, neither are they automatically prevented from bringing a legal claim.

If a stepchild was financially maintained by the deceased immediately before death, then they may, in appropriate circumstances, be able to apply to the court under the

Inheritance (Provision for Family and Dependants) Act 1975 for reasonable financial provision.

Obtaining specialist legal advice before preparing your Will can often reduce the likelihood of future litigation.
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What Are The Most Common Inheritance Disputes In Blended Families?

Unfortunately, blended families are more likely than many traditional families to experience inheritance disputes.

That does not mean disputes are inevitable. Good planning significantly reduces the risk.

The most common disagreements include:

• Children From The First Marriage Receiving Nothing

This frequently happens where everything passes outright to the surviving spouse.

The surviving spouse later changes their Will.

After the second death, the estate passes entirely to different beneficiaries.

This outcome is often completely contrary to what the first spouse intended.
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• Disagreements Over The Family Home

Questions commonly arise such as:

• Can the surviving spouse stay for life?
• Can the property be sold?
• Who pays for repairs?
• What happens if the survivor remarries?
• What happens if they move into care?

These issues can often be dealt with in a properly drafted trust.
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• Unequal Treatment Of Children

Parents sometimes wish to leave different amounts to different children. There may be perfectly good reasons to do so. However, if the reasons are never explained, resentment can develop after death.

Discussing your wishes with your solicitor can help identify ways of reducing future conflict.
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• Claims By Disappointed Beneficiaries

Family members sometimes believe they have been treated unfairly. While many claims are unsuccessful, litigation is expensive, stressful and can permanently damage family relationships.

Preventing disputes is usually far less costly than resolving them.
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• Business Succession Disputes

Sadly, our experience shows that there are plenty of family businesses that really struggle with disputes around succession issues. Blended families often own A variety of business interests including:

• family businesses
• farms
• investment properties
• share portfolios.

And as a direct result, common questions that regularly arise include the following in particular:

• who controls the business
• who inherits ownership
• whether children involved in the business should receive more than those who are not.

Business succession planning should be considered alongside your Will rather than separately. Without appropriate arrangements:

• surviving family members may inherit shares they cannot manage
• business partners may face uncertainty
• family disagreements may affect the future of the business.

Business owners should regularly review:

• shareholder agreements
• partnership agreements
• cross-option agreements
• succession planning
• Business Property Relief
• their Will.

Co-ordinating these documents It is really important in helping to avoid unintended consequences

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Property Ownership And Blended Families

The family home is often the largest asset. But how it is owned can have a significant impact upon estate planning. Jointly owned property may be held as:

• joint tenants
• tenants in common.

These are very different legal arrangements.

If property is owned as joint tenants, the deceased’s share usually passes automatically to the surviving owner through the rule of survivorship. It does not usually pass under the Will. For many blended families this may not achieve the desired outcome.

If property is owned as tenants in common, each owner may generally leave their share under their own Will. This often works better where trusts are being used to protect children’s inheritance.

Before changing ownership arrangements, legal advice from specialist solicitors should always be obtained.
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Inheritance Tax Planning For Blended Families

Estate planning is not only about deciding who inherits. It is also about preserving as much of your estate as possible. As a result, good inheritance tax planning may involve:

• making use of available tax-free allowances
• considering lifetime gifts
• using trusts where appropriate
• reviewing ownership of assets
• making charitable gifts
• ensuring available reliefs are not overlooked.

The tax rules are complex and change from time to time. What is appropriate for one family may not be suitable for another.

According to the private client team at Bonallack & Bishop, inheritance tax planning should always be integrated with your overall estate planning rather than considered in isolation.
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Business Owners And Blended Families

If you own a business, additional planning is usually advisable. Without appropriate arrangements:

• surviving family members may inherit shares they cannot manage
• business partners may face uncertainty
• family disagreements may affect the future of the business.

Business owners should regularly review:

• shareholder agreements
• partnership agreements
• cross-option agreements
• succession planning
• Business Property Relief
• their Will.

Co-ordinating these documents helps avoid unintended consequences.
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Estate Planning Should Be Reviewed Regularly

Many people prepare a Will and never look at it again. That is rarely advisable. Your estate plan should normally be reviewed after significant life events, including:

• marriage
• divorce
• entering a civil partnership
• birth of children
• birth of grandchildren
• buying or selling property
• receiving an inheritance
• starting or selling a business
• retirement
• serious illness
• changes in tax legislation.

A Will that reflected your wishes ten years ago may no longer achieve the outcome you want today.
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A Practical Estate Planning Checklist For Blended Families

Every family is different, but these questions provide a useful starting point.

Ask yourself:

• Who do I want to provide for first?
• Who should inherit eventually?
• Should my spouse be able to stay in the family home?
• What happens if my spouse remarries?
• Do I want my own children ultimately to inherit my share of the estate?
• Should stepchildren inherit?
• Are any beneficiaries vulnerable?
• Do I own a business?
• Is inheritance tax likely to be payable?
• Have I updated my pension nominations?
• Does my property ownership reflect my estate planning?
• When did I last review my Will?

If you are uncertain about any of these questions, obtaining legal advice now may avoid significant problems later.

Our Expertise In Estate Planning For Blended Families

Estate planning for blended families requires far more than simply preparing a Will. It often involves balancing the interests of a current spouse, children from previous relationships, stepchildren and future generations, while also considering inheritance tax, trusts and succession planning.

At Bonallack & Bishop, our private client team has extensive experience advising couples and families whose circumstances are more complex than a traditional family structure. We regularly help clients who are entering a second marriage, have children from different relationships or want to ensure that both their partner and their own children are protected.

Our family wealth planning team includes Elizabeth Webbe, a solicitor and Full Member of STEP (the Society of Trust and Estate Practitioners), the internationally recognised professional body for specialists in trusts, estates and succession planning. STEP membership is widely regarded as a mark of expertise in this highly specialised area of law.

Elizabeth also has particular expertise in cross-border estate planning, advising clients who have overseas assets, are not UK domiciled, or whose families have international connections. This additional expertise can be invaluable where blended families have property or beneficiaries in more than one country.

Rather than relying on standard Will templates, we take time to understand your family relationships, financial circumstances and long-term objectives. We can then recommend a tailored combination of Wills, trusts and succession planning designed to protect the people who matter most to you while helping to reduce the risk of future inheritance disputes.

Whether your priority is protecting children from a previous relationship, providing security for a new spouse, preserving family wealth for future generations or achieving a fair balance between all members of your blended family, our experienced private client solicitors can help you put the right arrangements in place with confidence.

Why Choose Bonallack & Bishop?

Estate planning for blended families requires more than simply preparing a Will. It requires an understanding of family relationships, tax planning, trusts and the practical issues that often arise after death.

Our private client solicitors regularly advise clients both locally throughout Wiltshire and Hampshire and across England and Wales on:

• Wills
• trusts
• inheritance tax planning
• lifetime gifting
• business succession
• estate administration
• disputed estates.

We take time to understand your family, your priorities and your concerns before recommending the most appropriate solution. No two blended families are the same. Your estate plan should not be either.

Careful Planning Today Can Protect Your Family Tomorrow

Blended families often have more complicated estate planning needs than traditional families. The law does not automatically produce fair outcomes simply because family members have lived together for many years or regard one another as parents and children.

A carefully prepared Will, supported where appropriate by trusts and wider estate planning, can help protect your spouse, your children, your stepchildren and your family’s future.

Obtaining legal advice while everyone is alive and relationships are good is almost always easier, less expensive and less stressful than resolving disputes after someone has died.

At Bonallack & Bishop, our experienced private client solicitors can advise on every aspect of estate planning for blended families, including second marriages, trusts, inheritance tax planning and protecting children’s inheritance.

Whether your family circumstances are straightforward or highly complex, we can help you put the right arrangements in place with confidence. Contact our private client team today to arrange a free initial discussion about protecting your family and your estate. Simply call our Solicitors on FREEPHONE 0800 1404544 for an initial no strings attached conversation
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Estate Planning for Blended Families – Frequently Asked Questions

What is estate planning for a blended family?

Estate planning for a blended family involves preparing Wills and other legal arrangements that reflect families with children from previous relationships, second marriages or stepchildren. The aim is to protect loved ones while reducing the risk of future inheritance disputes.

Is a standard mirror Will suitable for a blended family?

Sometimes, but not always. Many blended families benefit from more sophisticated arrangements such as life interest trusts or discretionary trusts because these can protect both a surviving spouse and children from previous relationships.

Can stepchildren inherit if there is no Will?

Usually not. Unless they have been legally adopted, stepchildren do not automatically inherit under the intestacy rules contained in the Administration of Estates Act 1925.

Are stepchildren entitled to inherit from a stepparent?

Not automatically. A stepchild may inherit if they are named in a valid Will. In some circumstances, they may also have the right to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975, but each case depends on its individual facts.

Can a stepchild challenge a Will?

Yes. Like other potential claimants, a stepchild may challenge a Will on recognised legal grounds or, where appropriate, seek reasonable financial provision under the Inheritance (Provision for Family and Dependants) Act 1975.

What happens to my Will if I remarry?

Marriage generally revokes an existing Will under section 18 of the Wills Act 1837, unless the Will was made in contemplation of that marriage. Anyone entering a second marriage should normally review or replace their Will.

How can I protect my children from a previous relationship?

Many families use trusts within their Wills to ensure that a surviving spouse is financially secure while preserving capital for children from an earlier relationship. The most appropriate solution depends on your circumstances and should be discussed with a solicitor.

How often should I review my estate plan?

You should normally review your estate plan every few years and after major life events such as marriage, divorce, the birth of children or grandchildren, buying property, receiving an inheritance or significant changes in tax law.