Independent Thinking®
Providing for the Children of Blended Families
October 14, 2016
Parents and grandparents with blended families – the result of more than one marriage – can face real challenges in dividing assets fairly.
The “yours, mine and ours” approach, in which separate but equal provisions are made for each group of offspring, can be relatively simple. The younger children may need support through their educations, to equalize their benefits in a manner that avoids antagonizing their step siblings.
More complicated are families in which the spouses have come into the marriage with different levels of wealth. Parents or grandparents planning for children usually decide to provide separately for their own biological descendants, often through trusts. In our experience, this approach generally meets with the full support of the combined families. The trust enables the wealthier spouse to provide for the other for his or her lifetime and ensures that the balance of the property passes to his or her own children.
In all instances, open discussions about estate planning goals will put the children’s fears to rest and provide for a more supportive and cohesive family. Please contact your wealth advisor for information about our educational programs for blended families and to discuss your own circumstances.
Karen Francois is a Partner and Wealth & Fiduciary Advisor at Evercore Wealth Management. She can be contacted at [email protected].