How to avoid estate disputes in blended families

Estate planning for blended families can be complex. For example, there are relationships such as stepchildren who do not receive legal title to an inheritance from a step-parent.  In New South Wales, navigating these complexities is crucial to preventing estate disputes that can lead to costly legal battles and family rifts.

An experienced Sydney, NSW estate planning lawyer at Szabo & Associates Solicitors can advise you on handling blended family wills and competing interests to avoid estate disputes.

How blended family Wills work

When drafting a blended family will, you will list your assets and name your intended beneficiaries. As part of a blended family, you can name your spouse, biological children, and stepchildren as beneficiaries. You will also select an executor to administer your estate and ensure your wishes are fulfilled.

Challenges in estate planning with a blended family

Estate planning for blended families can be complex if you are considering an equitable distribution of assets between your surviving spouse, children you have with your current spouse, and children from a previous relationship.

Blended family wills may include special provisions, such as life interests, testamentary trusts, and mutual wills, to meet your family’s needs. They may also require regular updates to account for additional family members and changing financial circumstances.

Life interests

You can consider a life interest when you and your partner own property as joint tenants. By creating a life interest, you can leave your share to your surviving partner for a specific period, such as when they remarry or wish to move to another location.

Testamentary trusts

A testamentary trust goes into effect when you pass away. It enables you to ensure that certain assets are given to your intended beneficiaries, such as stepchildren who do not have legal rights to your inheritance. It also protects those assets from third parties, including creditors.

Mutual Wills

A mutual will is made by both spouses at the same time, legally binding each from changing their will without the other’s consent. It can reduce the risk of your surviving spouse changing their will to benefit only their children from previous relationships.

Tips to consider when estate planning

To avoid will contests and other estate disputes among your blended family, you should consider the following tips when estate planning:

• Consider nominating an independent trustee company as your executor.
• Carefully consider your beneficiaries, as some may be more likely to file a family provision claim.
• Make adequate provision for all potential claimants when possible.
• Put a binding death benefit nomination in place, and keep it renewed to ensure your superannuation and life insurance monies go to the person intended since they do not automatically form part of your estate.
• Consider owning property as tenants in common rather than joint tenants, as ownership will automatically pass to your surviving spouse upon your death if you are a joint tenant.
• Retain the help of an estate planning solicitor.

Contact our Wills and Estate Lawyers based in Sydney, NSW

Estate planning as a stepparent requires careful consideration and proactive measures to avoid disputes among your blended family members. 

Please call us on 02 9281 5088 or complete the online contact form to contact our estate planning lawyers at Szabo & Associates Solicitors to minimise these disputes and ensure the execution of your wishes. We can help you achieve your blended family estate planning goals.