During November each year, participating solicitors volunteer their time to write basic wills for free, asking instead for a small contribution to the Will Aid charity.
If you’re thinking about writing or updating your will this month, you might need to factor in recent life milestones or events, and their effect on the whole of your family.
Blended families – those consisting of partners, their children together, and children from previous relationships – are on the rise in the UK. According to 2022 figures from the Department for Work and Pensions (DWP), there were around 2.4 million separated families in the country, with those families having around 4 million children.
According to the Guardian, as many as 1 in 3 UK families are now classed as blended. This setup can lead to complications when it comes to estate planning and it also makes having an up-to-date will more important than ever.
Keep reading to find out why.
A blended family might be built on strong bonds but that means nothing to the rules of intestacy
Starting a new stage of your life can be challenging as well as exciting. Your new blended family might have formed following a divorce, separation or even a bereavement and dwelling on your own mortality at this time might be tough. But planning is vital.
A will allows you to state who your estate should go to in the event of your death and is the simplest way to ensure your wishes are carried out. This gives you and your loved ones peace of mind and can relieve stress and worry for those you leave behind, at what will already be a very difficult time.
If you don’t have a will in place on death, your estate becomes subject to the laws of intestacy. These rules stipulate who should receive the proceeds of an estate, and in what order, and your wishes won’t be taken into account. Your unmarried partner and step-children could miss out.
Having an up-to-date will is crucial if you have a blended family
Having a will in place is the best way to make your wishes on death known, but it needs to be kept up to date.
A recent study reported by Professional Adviser found that nearly half (47%) of those in blended families had failed to update or change their will after big life events including divorce, re-marriage, having children, or becoming a stepparent.
You might want all of your children – including those that form your blended family – to inherit an equal share of your estate when you die. Without a will, your stepchildren will very likely inherit nothing.
Your money could also pass to a surviving spouse, even though you’re now separated and in a new relationship. If your ex re-marries, your money could ultimately pass to their children from a new marriage, while your partner at the time of your death misses out.
As the number of blended families in the UK increases, this kind of sideways disinheritance is increasing and disputes are on the rise. This problem is being exacerbated by a lack of communication and persisting taboos around discussing financial matters, especially among older generations.
Put a will in place, keep it up to date, and communicate what’s in it
When putting a will in place, or updating an existing one, communicating your wishes is a key step, but one that is often missed.
Professional Adviser reports that 21% of respondents from blended families had not discussed their finances at all, let alone their estate plans. This could have serious ramifications.
While 83% of those from “traditional” families received the inheritance they expected on the death of a parent, this figure drops to just 73% for those from a blended family. Worse still, a lack of communication and limited understanding of the rules of inheritance (especially where no will is present) is leading to disputes.
Around 40% of parents in blended families have disagreed about how assets should be passed on, compared to just 30% of traditional families.
Discussing your inheritance plans with all the affected parties means that everyone knows where they stand. It’s important for those set to inherit, allowing them to make long-term plans. But it’s arguably even more important for those not set to inherit.
Frank and open discussions allow you to explain your reasoning and elaborate on any issues arising. This should help to avoid problems, like costly will disputes, once you are gone.
Get in touch
If you’d like to discuss the importance of estate and inheritance planning for your blended family, or any other aspect of your long-term financial plans, get in touch. Contact us now to find out how our Chartered financial planners could help you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.
