Impact of Blended Families on Estate Planning: Effective Trust Structures, Beneficiary Challenges, Litigation

Among the greatest challenges for estate planners is planning for clients in a second or subsequent marriage. The intricacies increase when one or both spouses have children from prior marriages and in situations where age or premarital assets vary greatly between the spouses. Effective estate planning design balances providing for the surviving spouse and either party's desire to pass premarital assets to pre-marriage children.

Because of the issues unique to subsequent marriages, many ownership structures and asset titling strategies common to first marriage estate plans may not be appropriate for second marriages. Joint tenancy property can trigger more complex probate.

Additionally, estate planning council must structure testamentary and trust documents to shield against beneficiary challenges, which are more likely when children from prior marriages are involved and may result in litigation. Estate planners should know the impact of in terrorem clauses in wills and trust operating documents and the impact guardianship proceedings have on wills, established estate planning documents.

Listen as Laura M. Brancato, Partner at Meltzer, Lippe, Goldstein & Breitstone, provides a thorough and practical guide to the technical aspects of designing and implementing estate plans for second marriages and blended families.