Estate Planning for Blended Families in Michigan: Pitfalls and Solutions

Blended families are extremely common. When you or the person you marry has children from a previous marriage, your family is officially “blended.”

Blending families is often a joyous occasion. But even in the best of circumstances, with family members that love one other deeply, it still often takes a lot of time and effort to make blended families work. That especially holds true for navigating estate planning for blended families.

It’s always a good idea to work with a professional for estate planning in these types of cases. CBH Attorneys and Counselors has a wealth of experience in the type of planning needed to ensure spouses, step-children, half-siblings, and more will have their needs met. 

If you don’t have a plan in place, it may take months or years for your heirs to go through the probate process. The cost may eat away at the assets that are meant to help your family. In some cases, lack of planning can mean that your assets are inherited by your ex-spouse—or even a complete stranger!

Estate Planning for Your Blended Family is Vital

One of the first things you should do when you get married is create or update your estate plans. If your new spouse has children from a previous marriage, you may have new estate considerations for these new family members. By having an updated estate plan in place for your new family dynamic, your spouse and children will be supported by your legacy—instead of fighting over it.

Here are some of the reasons this is such a vital step:

• Avoid the probate process: If you die intestate (without a will or trust), your assets will be divided up according to what the probate court thinks is fair. This is a long and costly process. Since Michigan does not recognize stepchildren as legal heirs, the court has no obligation to make sure your stepchildren receive an inheritance.
• Choose your trustee/personal representative: Due to the nature of blended families, you might prefer a professional fiduciary to be your trustee or the personal representative of your estate. You’ll want someone trustworthy, objective, and fair for all legal and financial matters. Your spouse or adult child might have a conflict of interest in putting their biological family ahead of their blended family. 
• Choose who has health care power of attorney: If you have adult children and you’ve remarried, should your new spouse or one of your children be responsible for medical decisions if you are incapacitated? Part of your estate planning process should involve creating this advanced health care directive. 
• Plan for each of your children: The unfortunate truth of blended families is that step-siblings often have different financial opportunities, which can lead to resentment. When it comes to fairly providing for your children, that might not mean dividing things equally, especially if you have a disabled child that requires more expensive care. 
• Appoint a guardian for your minor children: Blended families have unique considerations for legal guardianship. Will your children go to different guardians? Is it in their best interest to stay together, even though they may not share the same parents? These can be challenging questions to answer. 

Navigating estate planning for blended families is essentially the same as it is for unblended families, but there can be more complicated considerations. Maybe you have property or assets that have been in your family for generations, and you’d like to make sure they go to your biological descendants. If you want to protect assets for your own children, you need to make that an explicit part of your plan.

RELATED: Why Is Estate Planning Important?

Estate Plan Pitfalls to Avoid

Blended family structures can add a layer of complication, which can sometimes have unintended consequences. It’s crucial to understand how and where your assets will go. Here are some pitfalls that may divert your legacy away from those you intended to provide for:

• You don’t have an estate plan: If you fail to make any estate plan, your estate will be distributed according to the Michigan intestate statute. The cost of the probate process will be taken out of your estate. If you were the breadwinner for your family, they could suffer financial hardship while waiting for the courts to process your assets. Avoid this pitfall by calling an experienced estate planning attorney today! 
• Your will or trust never got updated after your remarriage: If your old estate plan named your ex-spouse as the beneficiary, and you didn’t update the documents after you got remarried, your new spouse could be left with nothing. Avoid this pitfall by updating your estate plan after big life events, and checking it every few years to see if you need to make changes. 
• You didn’t name new beneficiaries: Many retirement funds and life insurance policies use account ownership and beneficiary designations to avoid probate. Again, if these don’t get updated, the funds may go to your ex-spouse. Avoid this pitfall by checking all your financial accounts and updating beneficiaries as needed. 
• You assume that your new spouse will treat your children fairly: Unfortunately, you have no idea what might happen after you pass. Over the years, your children and their step-parent may drift apart. If you die intestate, your spouse is likely to inherit most or all of your assets, particularly if they are the surviving joint owner of property. As time passes, your spouse may not see the need to keep your children’s best interests in mind. Avoid this pitfall by setting up a will or trust that prioritizes both your spouse and your children. 
• Not planning for your spouse to get remarried: If you leave your assets to your spouse, with the intent that they get passed down to your children from a previous marriage, it needs to be spelled out in your estate plan. Otherwise, if your spouse gets remarried, those assets could go to their new partner instead of your children. Remember, as step-children, your children would not be considered legal heirs of your spouse. Your legacy could be inherited by a complete stranger. Avoid this pitfall by setting up a marital bypass trust. (More on this below.) 

An experienced estate plan attorney can help you easily avoid these pitfalls and create a solid will or trust. Your attorney will have the knowledge to carefully craft estate planning documents to carry out your wishes for your spouse, your biological children, and your stepchildren. They can also give you legal or tax advice regarding your assets, so that you do not burden your family with extra complications while they are mourning a heavy loss.

RELATED: How Long Does Probate Take in Michigan

Need Help with Estate Planning? We’re Here for You!

CBH Attorneys and Counselors has in-depth experience with creating effective wills and trusts to protect your legacy. If you want to ensure that your children from previous relationships are cared for in their time of need, let us help you with estate planning for blended families.

We understand these can be difficult conversations. Death is an emotional topic, and blended families introduce an extra layer of complication when deciding what is “fair.” We will draw on our experiences to help you make decisions about how to best provide for your family after you’re gone, with compassion and empathy.

For a free consultation about our estate planning services, please contact our team or call us at (616) 608-3061. We are happy to help you find the simplest solution for your complex situation.

The content provided here is for informational purposes only and should not be construed as legal advice on any subject.