Blended families, a la The Brady Bunch, are fast becoming as atypical as the so-called nuclear family. The complications from this type of family apparently transcend the mortal plane because once one parent dies, there are often questions about estates and inheritance that need addressing. How can you ensure that a home in your name goes to your children rather than anyone else?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Figuring out how to plan your estate and your inheritance is complicated enough without adding half and stepfamily members into the mix, but it must be done.
First and foremost, if the home you are living in with your spouse and mixed family is in your name, you can still include it in your will for the home to pass onto your partner.
The best thing about this is that they won’t have to pay any inheritance tax because spouses are allowed to pass assets to each other without worrying about paying tax on the asset.
However, if you’re concerned about your children getting the home in the event of your spouse’s death, there’s a bit more work to be done.
You have two options to ensure the wishes for your home are followed through on.
You can discuss with your spouse your desire to have your birth children inherit your home and draw up a will that states those wishes, but unfortunately, there’s no guarantee that they will follow through on your plans or even alter the will after your death for the benefit of their children. It’s a nasty business and it might not feel right not trusting your partner, but the sad fact is, there is only one way to guarantee your wishes are fulfilled after your death.
The best way to protect your property would be to write into your will that your house passes into a trust for your husband or wife’s benefit as opposed to passing it over to your partner outright.
This allows them to live in the home after your death, but then once they pass on, you should state that the property goes to your children. This will supersede anything they have written in their will about their desires for the property.
Balancing all your responsibilities
By writing your will in this way, you eliminate the chance that your step-children will win any claim theymay try to make for the home. As the house was never in the living spouse’s estate, they will have very little to go on.
Their attempt might be based on the fact they depended on you financially and that your will didn’t provide any financial recourse to continue that care. You can avoid this entirely by ensuring they are provided for with other means and clearly convey your wishes before either you or your partner die so there’s no confusion.
Of course, if you share ownership on the home, this would be a completely different scenario and only pertains if you have sole ownership of the property.
Ensure that your family is fairly provided for
There are different types of trusts that allow flexibility in your inheritance planning and they enable you to give your assets away while still maintaining a degree of control. Dental & Medical Financial Services can help you strategically use your trusts to protect your assets and ensure that your chosen family and loved ones will benefit completely from the inheritance you want them to receive.
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