What Boerne Families With a Blended Household Should Get Right in Their Estate Plan

Building a blended family comes with many rewards, but it can also create unique estate planning concerns. When spouses bring children, assets, businesses, or financial obligations from previous relationships into a new marriage, careful planning becomes even more important.

Without a clear estate plan, Texas law may distribute assets in ways that do not reflect your wishes. Working with a Boerne estate planning attorney can help you create a plan that protects the people you care about and provides clarity for future generations.

Why Blended Families Require Special Planning

Many estate plans are built around a traditional family structure. Blended families often have additional goals that require a more customized approach.

For example, you may want to provide for your current spouse while also ensuring that children from a prior relationship receive an inheritance. You may also have separate property, jointly owned assets, retirement accounts, or a family business that requires special attention.

A well-designed estate plan can help you:

• Decide who receives your assets
• Protect children from previous relationships
• Reduce the risk of family disagreements
• Plan for incapacity
• Provide clear instructions for loved ones

Estate planning is ultimately about maintaining control over important decisions rather than leaving those decisions to the state.

Review How Your Assets Are Titled

One of the most important steps for blended families is understanding how assets are owned.

Some property may have been acquired before marriage, while other assets may be jointly owned. Retirement accounts, life insurance policies, investment accounts, and business interests often have their own rules regarding transfers after death.

Questions to consider include:

• Are your beneficiary designations current?
• Do account ownership structures reflect your wishes?
• Have major assets been reviewed since your marriage or remarriage?
• Does your estate plan coordinate with your financial accounts?

Assets that pass by beneficiary designation, such as many retirement accounts and life insurance policies, generally transfer according to the beneficiary form rather than the instructions in a will. Reviewing these designations regularly is an important part of estate planning.

How Trust Planning Can Help Blended Families

Trusts are often valuable tools for blended families because they can provide flexibility and control.

In some blended-family situations, trust planning can provide for a surviving spouse while preserving assets for children from a prior relationship. This can help balance the needs of multiple generations.

Depending on your goals, a properly funded trust may help:

• Provide ongoing support for a surviving spouse
• Protect assets for children and grandchildren
• Reduce the likelihood of inheritance disputes
• Help certain assets pass outside of probate
• Maintain greater privacy regarding asset distribution

The right trust strategy depends on your family's circumstances, assets, and long-term objectives.

Don't Overlook Stepchildren

Many people assume that stepchildren automatically inherit from a stepparent. In Texas, that is generally not the case.

Stepchildren typically do not inherit from a stepparent unless they are specifically included in an estate plan or have been legally adopted. This can create unintended results when families fail to document their wishes.

If you want a stepchild to receive part of your estate, your estate planning documents should clearly reflect that intention.

If Minor Children Are Involved

Families with younger children should also consider guardianship planning.

If something happens to you while your children are still minors, a court may need to determine who will care for them. Naming a guardian in your will allows you to express your preference and provide guidance for the court.

For blended families, this can be especially important when parents, stepparents, and extended family members all play significant roles in a child's life.

Planning for Incapacity Matters Too

Estate planning is not only about what happens after death. It should also address situations where you are unable to make decisions for yourself.

Important incapacity planning documents may include:

• Financial Power of Attorney: Allows a trusted person to manage financial matters on your behalf if you become incapacitated.
• Medical Power of Attorney: Authorizes someone to make healthcare decisions when you cannot communicate your wishes.
• Advance Directive: Allows you to document certain healthcare preferences in advance.

Key Takeaways

• Blended families often benefit from estate plans tailored to their unique family structure.
• Beneficiary designations should be reviewed regularly and coordinated with your overall plan.
• A properly funded trust may help provide for a spouse while protecting assets for children from prior relationships.
• Stepchildren generally do not inherit from a stepparent unless they are included in an estate plan or legally adopted.

Protect What Matters Most to Your Family

Every blended family has unique relationships, assets, and goals. A personalized estate plan can help provide clarity, protect loved ones, and reduce unnecessary legal complications in the future.

At McCammon Law, P.C., we help families throughout Boerne, New Braunfels, San Antonio, and surrounding communities create estate plans that reflect their individual circumstances. If you have questions about protecting your spouse, children, or legacy, it may be helpful to review your options with a Boerne estate planning attorney. Request a consultation to learn more. 

References: Kiplinger (June 27, 2022) “Yours, Mine and Ours: A Checklist for Blended Family Finances” and Forbes (April 2, 2024) “How Expanding The Legal Definition Of Family Helps Us All”