When blending a family, it can be difficult to decide how each new and existing member of the family will be taken care of. One major concern of blended families is how the surviving spouse will handle the estate when the first spouse passes. For example, the surviving spouse may choose to benefit his or her own children rather than the collective children of the blended family. Proper and considered estate planning for blended families ensures that each child, both biological and through marriage are protected.
Two of the most significant challenges in creating an estate plan for a blended family is choosing a guardian for minor children and deciding on the ultimate division of assets.
One option for a blended family estate plan is what is known as an AB Trust. This is a form of revocable living trust where the surviving spouse will typically have the power to revoke or amend the Survivor’s trust (Trust A) to the potential benefit of his or her children and the detriment of the predeceased spouse’s children. However, the surviving spouse will have no power to revoke or amend the Bypass Trust (B Trust) as this becomes irrevocable upon the death of the first spouse. This provides some form of protection for the predeceased spouse’s children as the B trust cannot be amended to remove beneficiaries after death.
While estate planning for blended families may add an additional layer of complexity, our firm is well-versed in meeting the planning needs of our clients. To guarantee that your wishes be carried out upon your passing, it is best to create a full estate plan with an experienced attorney. Call Tresp Law, APC today at (858) 248-2779 to schedule your consultation and begin planning for you and your family’s future.
