If you have remarried, particularly to someone who has children of their own, some additional estate planning is likely called for. It will pay off for you to know the common mistakes that Missouri blended families make in their estate plan so you won’t make them yourself.
Are your beneficiaries up to date?
A good place to start is to make sure you’ve updated all of your beneficiaries. This is a basic error that can be easily overlooked if you’re not careful. It’s one of the most common estate planning oversights made by those with blended families. You don’t want your ex-spouse’s name to still be on the beneficiary line of your 401(k), for instance.
Your loved ones won’t have to deal with probate if the money goes straight to the person you intend it to. You should check every other financial account you have while you’re at it. This goes for retirement, checking and savings as well as your life insurance beneficiaries.
Don’t leave out your will
Everything isn’t necessarily all said and done as soon as you’ve updated all of your financial documents. Don’t forget to change your will as well.
This document plays a significant role in determining where your assets will go once you pass away. If you fail to change your will, your ex-spouse could end up inheriting your house – among other things.
Decide who gets what
It’s common to arrange your will so that your new spouse will receive all of your assets. Once they pass away, whatever is left gets distributed equally between the children.
Make sure to decide who you want to inherit your sentimental family heirlooms. These are probably things that you want to keep in your side of the family rather than pass them down to your new spouse’s children.
Not all heirs should necessarily be treated equally. Depending on how much money you bring to the blended family, you may want your heirs to receive more than your spouse’s heirs. The same applies if your house is sold and you want your own children to receive the proceeds instead of your partner or their kids.