Blended families, in which spouses have remarried and bring children from previous marriages into the new family, face unique challenges in estate planning. Remarried spouses may have different assumptions about allocating expenses, managing individual debt, and how children from prior marriages should be treated financially.

　　With multiple sets of beneficiaries, and sometimes complicated family dynamics, the need for an estate plan is essential to ensure your assets are distributed according to your wishes—and in a manner that helps to avoid conflict among family members. Without a well-thought-out estate plan, there’s a risk of your assets being distributed according to the laws of your state. Your children or stepchildren could be disinherited.

　　Understanding changing family structuresAlthough blended families have always existed, the modern expansion of what defines a family—whether led by a single parent, two unmarried parents, same-sex parents, grandparents, and so on—requires new thinking, especially about money.

　　The once-common family structure of two parents living with their biological children has declined significantly since 1960, when 73% of children lived in a home with two parents in their first marriage; in 2015, only 46% of children did, according to the Pew Research Center. And although not all remarriages create blended families, 63% of remarriages do include stepchildren (versus 26% of marriages), according to the National Center for Marriage and Family Research.

　　Given the variables within any family, never mind a blended one, there is no one-size-fits-all formula. But there are a few foundational steps that you can consider when setting up your estate plan.

　　7 steps for making a blended family estate planAs with most aspects of end-of-life and legacy planning, estate planning for blended families is most successful when tackled sooner rather than later—and with a spirit of collaboration and patience.

　　Aim for clear communication. One of the first steps is to prioritize open and respectful communication in your family to ensure everyone’s interests are addressed. But establishing that level of discourse might be easier said than done. Depending on your family dynamics, you may want to consult a financial planning professional with experience in dealing with family matters.Take time to map out your goals. As discussions unfold, themes, concerns, and goals will emerge. It’s important to clarify these aims first, taking emotional and family dynamics into account, because the vision for your estate plan will naturally shape the tenor of the documents you set up.Update beneficiaries and property titles. It’s essential to review and update property titles and beneficiary designations on all relevant accounts, including checking and savings, certificates of deposit, mortgages, credit cards, and more. Create a will and know why it matters. Making a will establishes the distribution of your assets (and the care of minor children) according to your wishes. Without a will, your assets will be assigned according to the laws of your state. Yet about a third of people over age 70, who identify as the head of household, do not have a will in place. It’s also critical to understand when the terms of your will might be superseded by beneficiary rules or a prenuptial agreement so that you can coordinate documents.Plan for long-term care. With many people living longer lives, it’s important to consider the need for long-term care for you and your spouse and include provisions in your estate plan. A long-term care plan typically involves setting up advance directives, appointing a health care proxy, and allocating funds for medical expenses.Consider setting up trusts. Establishing a trust can provide greater control over how your assets are distributed, especially when minor children or financially dependent adult children are involved. A trust can also protect assets from creditors and ensure they’re used for specific purposes, such as education or health care.Review your estate plan regularly. Life circumstances change. An estate plan is a living document that should reflect those changes. Be sure to review and update your estate plan regularly to reflect major life events such as marriage, divorce, birth or adoption of children, or changes in your financial status.The bottom lineEstate planning for blended families requires careful consideration of individual needs, open communication, and nuanced decision-making. By following some basic steps, you can create an estate plan that minimizes family conflicts and ensures your wishes are carried out effectively. Above all, your estate plan should protect your family as well as your assets.

　　ReferencesAn Inheritance Can Make All the Difference in the World – Here’s Who Is Missing Out | crr.bc.eduWills, Wealth, and Race | crr.bc.eduThe Psychology of Estate Planning with Blended Families | finanicalplanningassociation.orgThe American family today | pewresearch.org