Advisor.ca recently offered some advice in the handling of problems with blended families in its article “Five ways to navigate blended-family finances,” which includes advice on the proper handling of finances in today’s world and in the future.
The tips include:
- Make sure all estate planning documents are updated to reflect the circumstances of the blended family. Asset distributions may need to be modified to make sure everyone gets a fair share of a parent’s estate.
- Choose an executor carefully as you will need to designate someone who has the respect and trust of both the new spouse and the previous children.
- Creating a trust and a gifting plan can be great ways to make sure adequate provision is made for everyone in the family. Trusts can be used to make sure a spouse has the necessary resources to live on and that children from a previous marriage cannot be cut off from receiving an inheritance.
- Buying life insurance can be another good idea as it can provide needed cash for expenses and help equalize inheritances when assets are difficult to divide.
- In some situations the best thing to do is to get a prenuptial agreement before getting remarried.
An estate planning attorney can guide you in avoiding the usual problems of dealing with a blended family.
Reference: Advisor.ca (Aug. 3, 2016) “Five ways to navigate blended-family finances”