Estate Planning for Blended Families: Strategies that work
Blended families represent a growing and meaningful part of society. Whether you have remarried, have children from previous relationships, or have formed close bonds with stepchildren, your family is unique, and your estate plan should reflect that.
Estate planning for blended families involves more than dividing assets; it’s about creating clarity, preventing conflict, and ensuring that your intentions are achieved effectively and precisely. The good news is that with the right strategy, you can protect everyone you love and build a legacy that reflects your values.
Proven Estate Planning Strategies for Blended Families
Every family situation is different, but here are some of the most effective tools we use when advising blended families:
- Life Interest Trusts – These allow you to provide for your spouse during their lifetime while ensuring that remaining assets pass to your children from a previous relationship.
- Discretionary Trusts – Useful when you want flexibility, these let trustees decide how and when to distribute assets, taking evolving family dynamics into account.
- Updated Wills and Letters of Wishes – Regularly reviewing your will and writing a clear letter of wishes helps reduce ambiguity and ensures your intentions are understood and respected.
- Gifts During Lifetime – Strategic gifting can allow you to support children or stepchildren now while also reducing inheritance tax exposure.
Pension Nomination Forms – Often overlooked, these forms let you specify who should receive your pension benefits, a critical step in blended families where assumptions can lead to unintended outcomes.
Why is Estate Planning Essential for Blended Families?
Estate planning is a tool for protection, security, and legacy in any family but the stakes are often higher in blended families. Without clear and carefully considered advice:
- A surviving spouse might unintentionally disinherit children from a previous relationship.
- Stepchildren are not automatically entitled to inherit under intestacy rules.
- If you die without a will, your spouse or civil partner will inherit the first £322,000 of your estate (as of 2024) and half of the remaining balance, the other half goes to your biological children. This may leave stepchildren or other dependents without support.
- If most assets are jointly held with a new partner, children from a previous relationship could be excluded entirely without legal protections.
That’s why proper estate planning is not only advisable - it’s essential.
If you're considering the best steps to secure your family's financial future, speaking with a qualified professional can make all the difference. Our experienced advisers are here to help you navigate your options with confidence.
Ready to take the next step?
We take the time to understand your unique circumstances and offer bespoke advice tailored to your needs. Whether you're estate planning for the future or simply looking for greater financial clarity, we’re here to support you every step of the way.
The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.
The writing of a Will involves the referral to a service that is separate and distinct from those offered by St. James's Place. Wills and Trusts are not regulated by the Financial Conduct Authority.
Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.
