Estate Planning Pitfalls To Avoid For Blended Families In California

In this article, you will discover…

• Unique challenges blended families face when estate planning.
• How to ensure fair treatment of biological and stepchildren in a will or trust.
• How often blended families should update their estate plan.

 What Unique Challenges Do Blended Families Face When Estate Planning?

Blended families face several unique challenges when it comes to estate planning.

Often, each spouse comes into the relationship with their own children and their own estate, but they still want to make sure their partner is cared for if something happens to them. At the same time, they want to protect their own children’s inheritance.

If the couple has been together for decades, sometimes everything is shared and divided among all of the children. However, if the marriage or partnership begins later in life, the spouses often want to keep their estates separate for their own children.

To address this, estate planning attorneys carefully draft a trust that provides for both situations. If one spouse passes first, the surviving spouse has enough security and support, but the children of the deceased parent are also protected from being unintentionally disinherited. These documents need to be crafted very carefully to reflect the family’s wishes.

One of the biggest challenges is often the residence. In California, where home values are high, much of a person’s estate may be tied up in the house. The trust needs to ensure the surviving spouse can continue living there if that’s what was intended, or can use the home’s equity to secure another residence.

How Can Blended Families Ensure Fair Treatment Of Biological And Stepchildren In A Will Or Trust?

In blended families, one of the biggest risks is that the children of the spouse who passes away first could be unintentionally disinherited. This can occur if the surviving spouse amends the trust and removes the deceased spouse’s children, leaving everything only to their own children. Understandably, that feels unfair and is one of the main concerns blended families have when planning their estates.

To address this, we often recommend that at least half of the trust becomes irrevocable after the first spouse’s death. In other words, that portion of the estate can no longer be changed or amended by the surviving spouse. The exact percentage depends on the family’s circumstances. If one spouse brought significantly more assets into the marriage, then it might not be an even split. However, in most cases, 50% is a good starting point.

This structure ensures that the deceased spouse’s children are protected and will inherit their share, while still allowing the surviving spouse to be cared for during their lifetime.

What Legal Risks Arise When Spouses In Blended Families Disagree On Distributing Assets?

When spouses in a blended family create an estate plan together, both must be in full agreement because the document requires both signatures and notarization. That process can often bring up important and difficult conversations.

As estate planning attorneys, we often find ourselves in the role of mediator, helping couples discuss and navigate these sensitive topics, especially when each other’s children are the key discussion point. For example, one spouse may express concern about a child’s ability to handle money, or whether a particular child would create conflict if named as trustee.

These conversations are especially common in blended families, where spouses naturally think about how the other spouse’s children might act after their passing. While disagreements may arise at the planning stage, most attorneys would not finalize an estate plan unless both spouses agreed, so the real legal risks aren’t in the discussion phase but come later down the road when one or both spouses pass away.

Attorney Jeannette Witten, Managing Partner of Hudson Martin PC, has made it her mission to guide residents of California through the tricky landscape of estate planning law. With over 20 years of experience crafting estate plans for a wide variety of clients, she is prepared to work with you to build the perfect plan tailored to your unique situation so you can have confidence that your family is protected.

Still have questions? Ready to get started? Contact Hudson Martin PC today to schedule an initial consultation.

How Often Should I Update My Estate Plan As A Parent In A Blended Family?

For blended families, it’s important to regularly review your estate plan, especially after major life changes. One key focus is ensuring your list of trustees is strong and well-suited to manage your estate fairly. A professional, neutral trustee is often the best choice because they provide transparency and reduce the likelihood of disputes among children.

It’s also important to review beneficiaries and specific gifts. For example, if a trust designates a vacation home to one spouse’s children, but the property is sold before the trust is executed, that gift could lapse, unintentionally disinheriting that side of the family.

To prevent these issues, we advise clients to review their estate plans and assets at least every two years. Regular updates help ensure that trustees, beneficiaries, and gifts remain aligned with current family circumstances, and that the plan continues to reflect the intent of both spouses.

How Can A California Attorney Guide Me Through This Process?

A key part of working with an estate planning attorney is the personalized attention they provide. It’s not just about checking boxes for us; it’s about understanding your unique circumstances and guiding you through all of your options.

For example, many spouses don’t realize that they can create mini trusts within their larger estate plan that focus on a single asset. These sub-trusts can specify exactly how that asset will be handled, including criteria for distribution to family members. This allows you to protect and manage the assets that are most important while keeping them separate from the rest of the trust.

What Legal Mistakes Do Blended Families Often Make When Crafting Wills Or Trusts?

One of the most common mistakes blended families make is not making a portion of the trust irrevocable or unamendable after one spouse passes. While most people assume everyone will act in good faith, there are instances where a surviving spouse could redirect assets in a way that is unfair to the deceased spouse’s children.

Without those protections in place, the children of the first spouse to pass could effectively be disinherited, creating conflict and potentially costly legal disputes. Experienced estate planning attorneys can guide blended families to structure trusts carefully, ensuring the surviving spouse is provided for while also protecting the interests of the deceased spouse’s children.

Still Have Questions? Ready To Get Started?

For more information on estate planning for blended families in California, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (831) 203-2860 today.