Estate planning for blended families

On Behalf of | May 5, 2022 | Uncategorized

Estate planning is something that every Indiana adult should do. It’s especially important to secure the future of your loved ones when you have remarried and have a blended family. Here are some steps you need to take.

Make changes to your will

Changing your will is crucial. The original version might have had your former spouse named as the person to inherit your assets. However, now that you’re divorced and remarried, you should remove your ex from your will and add your new spouse. You may also want to add in a clause about your stepchildren to ensure that they will get an inheritance upon your death. You will probably want your own children to inherit the most valuable possessions, so be sure to include a letter to the executor of your estate that details all the information.

Update your beneficiaries

Your beneficiary designations are an important part of your estate plan. You should change beneficiaries on all legal documents, insurance policies, IRAs, retirement plans and everything else that is to be left to your heirs after you have passed away. This should include any powers of attorney as well as you will probably want your current spouse or one of your children to handle matters related to your finances and health care if you become incapacitated in the future.

Create a revocable living trust

You may want to set up a revocable living trust to hold important assets and property to eventually leave to your beneficiaries, both biological and blended. A trust can prevent what you put into it from going through probate after your death and ensure that your beneficiaries receive their inheritances sooner. You can manage the revocable living trust throughout your lifetime and can have a person of your choice named as the trustee to oversee it if you are no longer able to do so yourself.