If you want to ensure that your children from your current and previous relationships and your current partner are all looked after when you die, you are going to have to make a Will. The intestacy rules that set out what happens without a Will don’t yet recognise unmarried partners, nor do they make any provision for your partner’s children even if you are married.
Estate Planning also helps to see whether a lifetime gift might be better than a gift in a Will or vice versa.
The following case studies, involving the Vine family, illustrate some of the issues which typically arise in a blended family.
Case Studies
Albert and Vera Vine, their son John and his wife Kate and Kate’s mother Gwen are each considering whether they should put Wills in place.
Albert & Vera Vine
Background
Albert and Vera are currently living together in their own property. Albert has recently been diagnosed with the early stages of dementia.
Issues
The couple have always treated their two children, John and Alice, equally throughout their lives. However, John is in a better position financially than Alice and the couple are now wondering whether to give them different amounts under their Wills to improve Alice’s situation.
They have also decided that they would like to leave their property to their grandchildren so that they have some funds for a deposit on a property but aren’t sure how to go about this. They have always considered Kate’s son Patrick, from a previous relationship, to be one of their grandchildren and would want him to also receive some money from the house.
Solutions
Putting Wills in place would mean that they could make gifts of different amounts to John and Alice based on their financial needs. Without a Will, the rules state that the assets would be split equally between the children.
They could also each place their interest in the property into trust on their death for the benefit of the grandchildren, whilst the survivor of them would be given the right to remain living in the property for their lifetime. They would need to let their lawyer know that Patrick was also to benefit, as if their Will simply referred to grandchildren, he wouldn’t receive the gift.
John and Kate Vine
Background
John and Kate have been married for 19 years and have two daughters Bethany and Amy. Kate also has a son Patrick who has lived with the couple all of his life and whom John views as his son.
Issues
John and Kate are both shareholders in John’s property development company. Patrick has recently joined the company at a junior level, but Bethany and Amy have shown no interest in the business at present.
If John didn’t make a Will, on his death his estate would be divided between Kate, Bethany and Amy. Patrick would not receive anything. In Kate’s case her estate would be split between John and the three children.
Solutions
By making a Will they could ensure that all of their children were treated equally. They could also choose to leave all of their shares in the property development company to Patrick and to make other gifts to their daughters to try and make the division of assets as fair as possible.
If either of their daughters showed an interest in the business at a later date then they could change their Wills to reflect this.
Gwen Elm
Background
Gwen, Kate Vine’s mother, is living with her new partner Ben in his property. She and Kate’s father Raymond were divorced 24 years ago. Gwen sold her own property after moving in with Ben. She has placed the proceeds of sale in a joint account with him as they are planning to purchase a property together in due course.
Gwen is close to her son, Eric, and his husband and son but has not had any contact with her daughter for 25 years.
Issues
Gwen hasn’t put a Will in place but assumes that, as she is living with Ben, all of her estate will automatically pass to him. Ben has assured her that he would look after Eric and his family from the funds he receives.
However, on Gwen’s death it is only the money held in the joint account that will pass to Ben. He will become the sole owner of the bank account.
All of her remaining assets will be divided equally between Eric and Kate.
Solutions
If Gwen were to make a Will she could ensure that both Ben and Eric were provided for. If she did not want to make a gift to Kate she could choose not to do so.
These examples show that being part of a blended family means that a Will is essential to ensure that your estate is divided amongst the people you view as family rather than just between your blood relations.
It is also vital when instructing a lawyer to draw up a Will that you are clear about the relationships between the family members. Without the right information some family members might not get the gift that you thought you had given them.
