A blended family can have a huge impact on your finances — whether it’s buying a home with our new partner or ongoing child support. But, one of the most important areas that is often overlooked, is the impact of a newly formed family structure on your estate plan.
One of the biggest concerns is making sure your family fortune doesn’t end up solely with your step-children and leave your children without an inheritance. A fair solution means your wishes are less likely to be challenged and your beneficiaries are left stress-free.
Case study - Jack and Irene
Jack and Irene are married and have children from previous relationships. Together they have a family home and a self-managed super fund. In the event of one of their deaths, they want to ensure that the surviving partner would be able to live in the family home and have access to a lifetime super pension. They also want their respective super balance to pass to their own children when they die.
The way their affairs are currently structured, on Jack’s death the family home and super would pass to Irene, and then on Irene’s death, all assets would pass to Irene’s biological children — leaving Jack’s children with nothing. Similarly, if Irene dies first, her assets would currently pass to Jack and on his death to Jack’s biological children only. Their estate planner recommended some changes to their estate plan.