Most of life’s milestones require planning in order to get
the most benefit from them. Estate planning is no different. This goes for traditional
families as well as for blended families, which are growing in number.
If you are about to become the head of a blended, or
step-family, then pay attention to some of the decisions which need to be made
when planning the distribution of your assets.
1. Keep your documents up to
date. A new marriage could invalidate a previous will, so check and make sure. Whether
you are about to enter a step-family or not, it is always a good idea to have
your will updated whenever something new is added to the mix. If not, you could
end up leaving your assets to your ex, even if you would rather not.
2.
Who will be the executor of
you will? It can be anyone you trust with the job, including spouse, children,
or children from a previous marriage. It can even be a friend or colleague. Don’t
forget to pick a third-party mediator, like an accountant or lawyer, which can help
avoid confusion and awkwardness.
3.
You can create a trust
which will help to pass on your assets to children of a previous marriage,
while still allowing you to provide for your present spouse. The trust can help
insure the correct division of assets.
4.
Life insurance can help
those inheriting from you, creating an additional source of funds. You can
designate your new children from a more recent marriage as beneficiaries of the
insurance, while the rest of your estate can go to your older children from a
past marriage.
5.
Even though it might seem
awkward, singing a marriage contract can keep things clear and straightforward.
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