A blended family is one in which one or both partners have children from previous relationships. As blended families become more prevalent in today’s society, it is important to navigate the complex issues that may arise when it comes to estate planning.
Traditionally, it is common for a testator to leave their entire estate to their spouse in their Will. However, for a testator in a blended family, drafting a Will requires balancing the interests of their children from their previous relationship with those of their current partner. If the entire estate is left to their current partner, the testator’s children from their previous relationship may be left unprotected. At best, the gifts to the testator’s children will be delayed until the surviving partner’s death.
An appropriate solution may be to divide the estate between the current partner and the children from the previous relationship. This ensures that the gifts to both the current partner and the testator’s children are unconditional and take effect immediately upon the testator’s death.
Further issues may arise when property and bank accounts are jointly held. If a testator owns a property with their partner as joint tenants, the property will automatically pass to the surviving partner upon the testator’s death, regardless of what is written in the Will. The same applies to joint bank accounts. In blended families, it may be more appropriate for property to be held as tenants in common, which allows each partner to own a share that can be distributed according to their Will.
There is no universal approach to estate planning for blended families. If you need assistance with drafting your Will, please give us a call on 02 4721 6200.
Written by April Miles
