Many people’s first introduction to a blended family came from watching “The Brady Bunch.” These days, blended families make up about half of America’s households.
These family dynamics have an impact on multiple areas, including daily chores, vacations, holidays and estate planning.
Dying without a will in California
California would refer to its intestacy laws regarding distributing all your assets if you were to pass away without a will. All marital assets go to your spouse. Your separate property will be divided between your spouse and biological children. Your step-children are not your legal heirs, so they will get nothing.
You and your spouse may have had an agreement that all of your assets would go to your children but without a will stating such, that may not occur. Valuable family heirlooms might become part of your spouse’s estate.
In addition, blended families may have underlying tensions, though relationships appear to be healthy. Without an estate plan, unresolved conflicts can find their way to the surface, resulting in broken relationships, stress and legal battles. Confusion and conflict can be minimized by leaving clear instructions regarding your intentions.
Creating an estate plan should begin with a comprehensive will where you name beneficiaries and specify guardians for minor children. You may also want to establish a Qualified Terminable Interest Property (QTIP) trust. This type of trust can ensure your surviving spouse receives income for the trust’s assets during their lifetime and, upon their death, passes on to your children as the intended beneficiaries.
Life insurance policies are another strategy. You can name your children the policy’s beneficiaries while leaving your other assets to your spouse. You can also name your children as beneficiaries of some of your retirement accounts.
When creating your estate plan, you should communicate openly with your spouse, children and other affected family members. This may give them peace of mind and provide them with an opportunity to ask questions. You will want to work with an individual who can help ensure that your estate plan clearly states your wishes and is legally compliant.