For advisers working with clients in blended families, estate planning requires a nuanced approach. Children from prior relationships often complicate the standard inheritance structure, necessitating careful planning to prevent unintended outcomes.
Clients may not realise that default inheritance laws might not align with their wishes—especially when they intend to provide for both a surviving spouse and children from previous relationships. Without tailored solutions, there’s a real risk of assets going solely to the spouse, leaving children from prior relationships disadvantaged.
Cheap online Wills and post office Wills typically do not cover complex estate plans, especially for blended families. Many online wills are low-cost or even free, but their business models often lock client beneficiaries into expensive probate processes or cross-sell additional services. This approach can ultimately be costly and ineffective for families with more intricate needs.
By helping clients explore options like testamentary trusts, advisers can facilitate equitable asset distribution that respects their clients’ intentions. These trust structures allow clients to specify how and when each beneficiary receives their inheritance, securing both the children’s future and the spouse’s financial wellbeing.
Encourage clients to have open discussions with family members. Transparent communication around estate decisions can alleviate future conflicts, fostering a supportive family environment. With the right planning, advisers can help clients achieve peace of mind, knowing their assets will be managed in a way that honours their wishes and supports harmony within their blended family.
Inherit Australia provides advisers with a structured estate planning facilitation process to ensure that client interests and wishes are maintained as part of their estate plan.
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