It’s no surprise that couples disagree throughout their marriage. For the most part, those differences can be resolved relatively quickly, but common ground can feel very far off when it comes to estate planning. A few critical considerations can influence how you select and communicate your intentions to your beneficiaries. Moreover, the spectrum of complexities that can arise around children in blended families is often one of the most emotionally challenging aspects of estate planning.
EXPECTATIONS OF THE MONEY
It’s often assumed by one partner or the other that their children will be the estate’s beneficiaries. But one partner may want to leave a portion of the estate to an educational institution, charity, a grandchild, or even a closely-regarded caregiver.
Quite often, children assume they’ll inherit an estate in its entirety. To avoid animosity or confusion, it’s crucial to talk through your intentions ahead of time. During this conversation, consider if the children are prepared to take on the responsibility of the inheritance. Sometimes, administering the funds through a third party makes more sense but can cause hurt feelings, so tread lightly here.
SURVIVING SPOUSE
It may be uncomfortable for couples to discuss the possibility of remarriage after divorce or death. But they can often agree that it’s important to talk through the option for the sake of protecting the financial well-being of the children they’ve raised together. Too often, couples don’t prepare for actual scenarios.
The worry is that if the surviving spouse remarries and shares their estate with a new partner, then the children from the previous marriage may no longer get their fair share of the estate. Transferring wealth with a new spouse and a new family dynamic encourages complications that only clear communication can appease.
BLENDED FAMILY
Previous marriages that include children also play a part in how you approach your estate plan. Frequently in estate planning, you have to grapple with two completely different expectations.
No matter how you decide to allocate your estate—whether everything goes to your children or you divide your wealth among a larger group—it’s vital to speak to your beneficiaries ahead of time. Though there are no simple solutions to multi-layered family and wealth transfer issues, creating a safe space to discuss these delicate issues can prevent resentment and confusion.
Implemented correctly, setting up an estate plan doesn’t have to be complicated or harbor hurt feelings. We can help you start your plan or even change up an existing plan. Call our office at (603) 261-3736.
Adapted from City National Bank1
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.