Family dynamics can present a unique challenge in the estate planning process. This is especially true for those who are in a blended family. After all, while you might be concerned about supporting your spouse and the children you have together, your spouse may not be as interested as you are in providing for your children from another relationship.
What estate planning tools can you use in a blended family?
Although your unique family dynamics may require a more nuanced estate plan, the good news is that there are tools out there to help you achieve your goals. This includes each of the following:
- Remainder trust: Through this trust, you can support your spouse for their lifetime while specifying that any remaining assets at the time of your spouse’s death will be diverted to other beneficiaries, such as your children from another relationship.
- A-B trust: Here, you create two trusts. One supports your spouse while the other can support a different identified beneficiary. This can ensure that you support your children and your spouse while also potentially reducing your estate taxes.
- Lifetime gifting: You can give money directly to those you wish to support while you’re still alive. This can prevent some estate planning concerns that you might have while also allowing you to see your loved one’s enjoy those assets.
Develop the estate planning strategy that’s right for you
These are just a few of the many options that might be at your disposal. But if you want to protect your loved ones and your estate, you need to be fully informed about all of your options so that you can choose those that are best suited to meet your needs.
Therefore, as you embark on your estate planning journey, please be sure to take the time needed to learn as much as you can so that you can make the fully informed decisions that are right for you.