Navigating Inheritance in a Blended Family: What You Need to Know

Blended families are becoming more common, with many people entering new relationships, marriages, or civil partnerships later in life, or ‘starting again’ and having more children with a new partner.

While these families bring joy and love, they also introduce unique legal and financial challenges that require careful planning. Without clear legal arrangements, your final wishes may not be carried out as expected, leading to unintended consequences for your loved ones.

Why estate planning is essential

Though it may be uncomfortable to plan for a time when you are not around to support your family, ensuring a solid estate plan offers peace of mind. Crucially, it can:

• Prevent family arguments
• Stop assets from falling into the wrong hands
• Minimise inheritance tax liabilities
• Avoid costly and time-consuming disputes

Despite the importance of estate planning, only 1 in 6 people have formalised an estate plan, and over a third haven’t drafted a will. And 1 in 5 people (22%) aren’t sure what a lasting power of attorney is.

Starting with a will

A properly drafted will is essential. Without one, the law dictates who inherits your estate, often prioritising your spouse or civil partner over children from previous relationships. Stepchildren are not automatically entitled to inherit under intestacy rules, meaning they may be left out entirely. By having a well-structured will, you ensure that everyone is provided for according to your intentions.

Setting up a trust

Trusts can be an effective way to safeguard your assets while ensuring fair distribution among your loved ones. A will trust, or life interest trust, allows your spouse, civil partner, or cohabitee to benefit from your assets during their lifetime, such as living in the family home or receiving income, while preserving the capital for your children in the future.

If you plan to include a cohabitee in your arrangements, it’s particularly important to seek expert legal and tax advice, as inheritance tax exemptions do not automatically apply to them.

Don’t delay on getting an LPA

Many people wrongly assume that your next of kin will be able to make decisions about your healthcare, or easily gain access to your finances, should you lose mental capacity. However, this is not the case. Only a nominated attorney using a Lasting Power of Attorney (LPA) document can do this.

Choosing the right attorneys is crucial, particularly in blended families where relationships may be sensitive. Without an LPA in place, your loved ones might face lengthy and expensive legal proceedings to gain the right to act on your behalf.

Open Conversations Matter

Estate planning doesn’t require unanimous agreement from all family members, but discussing your intentions can help set expectations and minimise surprises. Open communication fosters understanding and prevents future tensions.

Preventing Conflict

Inheritance disputes can arise, especially in complex family structures. Clear, legally documented wishes can help prevent misunderstandings and disagreements. Making fair, well-thought-out decisions, rather than trying to appease everyone, ensures clarity and reduces the likelihood of disputes.

When should you start estate planning?

Estate planning isn’t just for when you’re old and grey, it’s relevant for anyone who owns assets, has dependents, or runs a business. If any of the following apply to you, it’s time to consider putting plans in place:

• You own property
• You move in with a partner
• You have assets to pass down
• You have dependents
• You run a business
• You experience a life change

Can I do my own estate planning?

Navigating estate planning within a blended family can be complex, but with the right legal advice, it doesn’t have to be daunting. An Accredited Lifetime Lawyer can guide you through your options, helping you create a robust estate plan that protects the people who matter most.

How to start estate planning

Planning for your family’s future is not just about legal compliance, it’s about ensuring stability, financial security, and peace of mind for all involved. Seek legal advice now to create a well-structured estate plan that aligns with your blended family’s unique needs.
For more information, you can download our dedicated estate planning guide here.