I Thought The Kids Would Get it Eventually…

One of the most common (and oftentimes costly) mistakes in blended families is failing to update your Will after remarriage. Many people assume their estate would “naturally” end up with their children.

A classic example…

Husband and Wife divorce; the wife remarries and doesn’t update her Will (which was invalidated on marriage). Therefore, on death the wife leaves her estate to her new spouse trusting that he will later share the estate with her children from her first marriage.

On the death of her second husband, it becomes evident that he failed to make a Will. A common misconception in estate planning where there are blended families is the assumption that stepchildren automatically inherit the way biological children do. Under the rules of intestacy in England and Wales, unless the stepchildren have been legally adopted, they do not automatically inherit. To make matters more complicated, if the second husband also has children from a previous relationship, the cause would effectively be that the step-children are disinherited and would never take a share in their late mother’s estate.

So, where somebody dies without a valid Will – or an outdated one – the outcome can be very different from what the family expected.

Blended families often involve competing priorities:

• Protecting a current spouse
• Preserving assets for children for earlier relationship
• Balancing fairness between what is “mine”, “yours” and “ours”

Unfortunately, crossed fingers and promises of “we had agreed”  can cause real difficulties when administering estates. A step-parent may have helped raise a child or children from their spouse’s earlier relationship from a young age, contributing financially towards their wellbeing and living costs. Naturally, people are surprised when they later discover that none of this creates any automatic inheritance rights.

In some circumstances, a stepchild may be able to pursue a claim under the Inheritance (Provision for Family and Dependence) Act 1975 and claim that they were financially dependent on their step-parent. The reality is that this is fact-specific; it can attract court costs and be devastating for families already suffering from a bereavement.

A well-drafted Will can protect these issues from ever arising and help avoid future disputes. Blended families frequently require more technical estate planning advice than they may initially expect, and simple Wills may not be sufficient where there are children from previous relationships or competing financial priorities.

Our Private Client team can discuss all of these issues with you and advise how best to proceed in a way that will protect all parties and take into consideration all of your wishes. Contact us today or call 0800 088 6004 to make an appointment with one of our specialists.