Estate Planning for Blended Families in New Jersey
The American family is changing. The most recent data from the Pew Research Center shows that around half of U.S. families are “non-traditional” families. If you are part of any type of blended family, it is crucial that you take a proactive approach to estate planning. You need a plan that protects the specific (unique) needs of your family. Here, our New Jersey estate planning attorney provides a comprehensive guide to estate planning for blended families.
Step #1: Put an Emphasis On Open, Ongoing Communication
Communication is key for effective estate planning. It is crucial that all family members—from spouses to biological children to stepchildren to other family members—are part of the conversation. Everyone’s expectations and concerns are addressed from the outset. Encourage regular family meetings to discuss estate intentions openly and transparently. Proactive communication can help to mitigate conflict.
Step #2: Avoid Relying on the Intestacy Laws in New Jersey
In New Jersey, intestacy laws—which must be relied upon if someone dies without a will—do not work well for a blended family structure. These laws may automatically distribute your assets to biological children—potentially excluding step children altogether. To prevent unintended consequences, you need to have a will—and potentially a trust—in place.
Step #3: Develop a Plan for Health Care and Incapacity Risk
Planning for potential health care needs and the risk of incapacity is a critical component of estate planning—especially for blended families. It is overlooked in far too many cases. Establishing durable powers of attorney and health care directives ensures that decision-making authority is in trusted hands should you become unable to make decisions yourself.
Step #4: Determine What Should Happen to Property/Assets
As you set up your estate plan in New Jersey, you must determine who will get to inherit what after you pass away. Deciding how to distribute property and assets can be particularly challenging in blended families. For this reason, you should consider creating specific bequests that clearly state what each family member receives.
You may want to consider using a qualified terminable interest property (QTIP) trust. It is an option that allows you to provide for your surviving spouse during their lifetime, with the remainder of the assets going to your children from a previous relationship upon their passing.
Step #5: Ensure that Estate Planning Document Remain Up-to-Date
Estate planning is not a one-time task. The reality is that life brings changes, including things like marriages, remarriages, births, and deaths. A major life event could require an update to your estate plan in order to reflect new family dynamics. Make sure your estate plan is fully up-to-date.
Contact Our New Jersey Estate Planning Lawyer Today
At Poulos LoPiccolo PC, our New Jersey estate planning attorney is standing by, ready to help you and your family put the right structure in place. If you have any questions about estate planning as a blended family, please do not hesitate to contact us today for a completely confidential initial appointment. Our firm provides estate planning support throughout New Jersey.
Source:
pewresearch.org/social-trends/2015/12/17/1-the-american-family-today/#:~:text=According%20to%20the%20most%20recent,reliable%20data%20first%20became%20available.
