An article from The University Herald, “The Challenges and Complexities of Estate Planning for Blended Families, ” clarifies some of the major issues that blended families face. When creating or updating an estate plan, the parents need to set emotions aside and focus on their overall goals.

Estate plans should be reviewed and updated, whenever there’s a major life event, like a divorce, marriage or the birth or adoption of a child. If you don’t do this, it can lead to disastrous consequences after your death, such as unintentionally leaving all your assets to an ex-spouse.

If you have children from previous marriages, make sure they inherit the assets you desire after your death. When new spouses are named as sole beneficiaries on retirement accounts, life insurance policies, and other accounts, they aren’t legally required to share any assets with the children. [Read more…]

When siblings are able to work together to settle their parent’s estate, it may take a little extra time and there may be some negotiating. However, the details are worked out. Sometimes the family bonds become even stronger. There are also ugly stories where families are fractured.

This occurs when the executor acts with some (or a great deal of) self-interest, especially when it’s one of the siblings. One child may feel entitled to more than an equal share, because of the care they’ve given the parent or any of a number of other reasons.

Nj.com’s recent article, “Your rights when family fights over a will,” explains that executors and trustees serve in a fiduciary capacity.  It means they have a legal obligation to act for another (the beneficiaries) in a fair, honest, and transparent manner. While executors and trustees have the legal authority to manage the affairs of an estate or trust, they are still accountable to the beneficiaries and must inform them of what they’re doing.

[Read more…]