It’s no surprise that couples disagree throughout their marriage. For the most part, those differences can be resolved relatively quickly, but common ground can feel very far off when it comes to estate planning. A few critical considerations can influence how you select and communicate your intentions to your beneficiaries. Moreover, the spectrum of complexities that can arise around children in blended families is often one of the most emotionally challenging aspects of estate planning.
EXPECTATIONS OF THE MONEY
It’s often assumed by one partner or the other that their children will be the estate’s beneficiaries. But one partner may want to leave a portion of the estate to an educational institution, charity, a grandchild, or even a closely-regarded caregiver.
Quite often, children assume they’ll inherit an estate in its entirety. To avoid animosity or confusion, it’s crucial to talk through your intentions ahead of time. During this conversation, consider if the children are prepared to take on the responsibility of the inheritance. Sometimes, administering the funds through a third party makes more sense but can cause hurt feelings, so tread lightly here.
SURVIVING SPOUSE
It may be uncomfortable for couples to discuss the possibility of remarriage after divorce or death. But they can often agree that it’s important to talk through the option for the sake of protecting the financial well-being of the children they’ve raised together. Too often, couples don’t prepare for actual scenarios.
The worry is that if the surviving spouse remarries and shares their estate with a new partner, then the children from the previous marriage may no longer get their fair share of the estate. Transferring wealth with a new spouse and a new family dynamic encourages complications that only clear communication can appease.
BLENDED FAMILY
Previous marriages that include children also play a part in how you approach your estate plan. Frequently in estate planning, you have to grapple with two completely different expectations.
No matter how you decide to allocate your estate—whether everything goes to your children or you divide your wealth among a larger group—it’s vital to speak to your beneficiaries ahead of time. Though there are no simple solutions to multi-layered family and wealth transfer issues, creating a safe space to discuss these delicate issues can prevent resentment and confusion.
Implemented correctly, setting up an estate plan doesn’t have to be complicated or harbor hurt feelings. We can help you start your plan or even change up an existing plan. Call our office at (540) 720-5656.
Adapted from City National Bank1
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.