Four Estate Planning Steps to Promote Peace in Blended Families
The unique dynamics involved when a family includes biological children, ex-spouses and stepchildren mean it’s even more important to communicate and plan.


Estate planning is an important aspect of securing the financial future of your loved ones. However, when it comes to blended families, navigating the complexities of estate planning becomes even more critical. Blended families, where individuals bring children from previous relationships into a new family, often require careful consideration to ensure fair distribution and to keep the peace.
Blended families present unique dynamics that can complicate the estate planning process. Unlike traditional families, where assets like the family home are typically passed down to biological children, blended families involve stepchildren, ex-spouses and other varying family structures. The family dynamics can prove challenging for even the most understanding of families.
For example, how will Dad’s biological children feel about their stepmother getting part of their inheritance? Or consider a remarriage later in life when all the adult children are grown. Often, failing to plan or creating an inadequate plan can unintentionally completely disinherit biological children, leaving everything to adult stepchildren instead.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Start with open and honest communication.
One of the first steps in navigating estate planning for blended families is open and honest communication. It is essential for all family members, including stepparents, stepchildren and biological children, to express their wishes and concerns. This dialogue helps in understanding each person's perspective and lays the foundation for a comprehensive estate plan that considers everyone's needs.
To be fair, not all family dynamics will allow for this type of transparent communication. It is a difficult conversation. However, failing to let family members know your wishes can wreak havoc once you pass away.
2. Review and update beneficiaries.
A critical aspect of estate planning is reviewing and updating beneficiary designations on life insurance policies, retirement accounts and other financial assets.
Failure to update these designations can lead to unintended consequences, such as assets going to an ex-spouse, or stepchildren being excluded.
Regularly reviewing and adjusting beneficiary designations ensures that assets are distributed according to your current wishes.
3. Create a will and trust.
Drafting a clear and comprehensive will is essential for individuals in blended families. A will allows you to specify how you want your assets distributed and who will be responsible for managing your estate. In the case of blended families, a trust can also be a valuable tool. Trusts provide flexibility in distributing assets and can include provisions for stepchildren, ensuring they are treated fairly alongside biological children.
In blended families, stepchildren may not have legal rights to inherit from their stepparent unless specified in the estate plan. Including provisions for stepchildren in the will or trust can help ensure they are not unintentionally disinherited. This may involve specifying a percentage of assets or providing for them in a similar manner as biological children.
4. Account for other financial obligations.
Many individuals in blended families may have financial commitments to their ex-spouses, such as alimony or child support. It is crucial to account for these obligations in the estate plan to prevent conflicts and legal issues. Clearly outlining any financial responsibilities in the plan ensures that the intended beneficiaries receive their rightful share without interference.
Estate planning for blended families requires careful consideration, open communication and proactive decision-making. By addressing the unique dynamics of blended families through clear documentation, updated beneficiary designations and a frequent review of the estate plan, individuals can ensure that their assets are distributed according to their wishes, promoting harmony among family members. Taking the time to navigate these complexities now can provide peace of mind and financial security for the blended family in the future.
Related Content
- Estate Plan Check-Ups: Don’t Just Set It and Forget It
- Creating a Blended Family? Three Key Steps to Consider
- Comparing Estate Planning: ‘Leave It to Beaver’ vs. ‘Modern Family’
- Raising Grandkids? Five Financial Considerations
- Here’s What Couples Need to Know About Merging Finances
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Justin B. Stivers was born in Florida but raised in Knoxville, Tenn. He pursued his undergraduate education at Appalachian State University in Boone, N.C. After graduating, Justin served three years in the United States Peace Corps, living in a rural coffee farming community in Honduras. This experience not only enriched his life but also helped him become fluent in Spanish. Upon completing his service in Honduras, Justin attended law school at the University of Miami in Miami, Fla. He lived in Miami for the next 15 years, during which he built a successful estate planning law firm. In this role, Justin helped families plan for their futures, feeling a sense of accomplishment and service.
-
It Could Soon Be Harder to Get a Refund on a Flight Gone Wrong
The Department of Transportation's deregulation efforts are taking aim at your rights to compensation for delays, canceled flights, lost baggage and more.
-
The Final Countdown for Retirees with Investment Income
Retirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
Holding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their Communities
Credit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth Adviser
From how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate Expert
Some new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
Two business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)
The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is Ill
During tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.