Wills and Estate Planning Adelaide: Estate Planning Challenges of Blended Families

As more Australians get married more than once, estate planning issues involving blended families are becoming more common.

Estate Planning Challenges of Blended Families

A blended family is where there are children from more than one relationship and they raise particular challenges for estate planning.

A typical example is where a man has children with his first wife, then re-marries a younger woman and has additional children with her.

Because marriage automatically revokes all prior Wills, his older children may be concerned that his new wife and her children may influence him to their advantage, at the expense of the older children’s inheritances.

This is a growth area for lawyers who work in the area of Family Provision claims, where Wills and estates are challenged in Court.

If you have a blended family, you need to exercise considerable caution when creating your Will and estate plan.

Wills and Estate Planning Adelaide: How Estate Planning Trusts Can Protect You and Yours

How Estate Planning Trusts Can Protect You and Yours

Estate planning and trusts are all about planning, not only for your own future, but also the financial well-being of your family and loved ones after you’re gone. However, the reality of life can often get in the way of a smooth transition – divorce, second marriages, step kids, long-term illness and other family changes can sometimes make life and plans unpredictable.

Protecting your wealth & assets and the financial well-being of your family is about a lot more than simply parcelling-out your assets – it’s about providing for yourself & your family members in a way that’s responsible and specifically addresses your personal situation.

Many people make the assumption that estate planning and trusts are only for incredibly rich people. That is wrong.

A family discretionary trust is a very versatile estate planning tool that allows you to address inheritance goals for your beneficiaries – who may still be children, are disabled, are from a mixed family  – and a trust might be the answer to difficult questions like who will manage your assets if you or they become incapacitated.

Typically, when a child inherits money, it is invested for him and held until he or she turns 18 or older. Of course, giving a young person access to a large amount of money at the age of 18 can be dangerous and detrimental to their long-term financial health if they lack maturity or sufficient financial wisdom.  Some parents think that the lure of fast cars and endless parties may be too great a temptation for their beneficiaries to handle at age 18, and so they specify an older age, frequently 21 or 25.

Wills and Estate Planning Adelaide: Don’t Make These Common Mistakes with your Discretionary Family Trust

Discretionary trusts (often called family trusts) are very powerful planning tools you can use for all kinds of purposes. Trusts can simplify & minimise or even avoid probate, protect your beneficiaries from creditors or divorcing spouses and

Don’t Make These Common Mistakes with your Discretionary Family Trust

can provide for education for grandchildren or your favourite charities.

When a trust is part of your overall comprehensive estate plan, you should try to avoid these common trust mistakes:

Mistake 1: Failing to title assets in the name of your trust

If you have not put your assets into your trust, also called “funding” your trust, you have lost some of the benefits of your trust.

Any assets that are in your own name at the time of your death will probably need to be probated. However, any assets that are titled in the name of your trust at the time of your death will avoid probate and usually result in lower after-death administration costs.

In order to receive the protection and benefits capable of being provided by the trust, generally (except for superannuation funds and certain annuities) most of your assets would need to be transferred into your trust during your lifetime.