Blackburn Accounting - Succession Planning

blended families Estate Planning for blended and joined families needs more than a standard Will to deal with the complexities. It’s crucial to address both members’ expectations, entitlements, and legal requirements. One size doesn’t fit all in these situations.

Considerations include;

To provide for a current spouse

Protect children from a previous relationship

Preserve assets brought into the relationship for their children

Treat everyone fairly

Research indicates that blended families are particularly vulnerable to estate disputes because of competing factions. Relationships can be complicated, not just in family composition but in the joining and creation of wealth when parents re-couple. Often, there are multiple eligible members, such as a surviving spouse and children from a previous relationship, all with expectations.

Disputes and challenges often arise when spouses are not adequately provided for; one group is left with little or no provision, and assets from part of the estate are subject to challenge.

Inheritance disputes can lead to costly legal battles, Will challenges, erosion of the estate’s wealth and sometimes members adopting manipulative and dishonest behaviour.

When planning, a broad strategic approach looks at;

Your family structure

The legal risks, including family provision claims

Your assets and how they are held

And the outcomes you want to achieve.

If you are part of a blended family, you are encouraged to plan early and seek expert advice on these matters. Legal advice can help with understanding legitimate claims and ways to protect your family, including personal and family wealth.

Importantly, be aware that Succession Planning and Estate Planning are different discussions, but both are critical in any family situation. Succession Planning addresses the living transfer of assets, responsibilities, and family roles to the next generation, ideally planned while the asset holder is present to direct it.

Estate Planning addresses what happens at death – wills, trusts, and beneficiary nominations.

Blackburn Accounting is your Family Business Specialist and offers solutions for the following issues;