Protecting Your Children’s Inheritance in Blended Families

Blended families are increasingly common in the UK, but they can lead to serious and damaging legal issues when it comes to inheritance and estate planning. For example, children from an earlier relationship may lose out on their intended inheritance. By seeking expert advice and understanding your legal position and those of your children in the context of a blended family, you can safeguard their inheritance while supporting both your surviving spouse and children. This article discusses Wills for blended families in England and Wales, inheritance risks when parents remarry, and the practical steps you can take to secure your children’s future, such as trusts and nuptial agreements.

How blended families risk child inheritance

Entering into a blended family arrangement following divorce can risk the inheritance received by both children from your previous marriage and stepchildren for a number of reasons, as follows:

Rules of intestacy apply without a Will - Stepchildren may lose out if you die without a valid Will. This is because, without a Will, your estate will be distributed under the rules of intestacy. It is important to understand that stepchildren are not recognised under these rules and will not inherit unless formally adopted.

Previous Wills are revoked by marriage - Any Will drawn up before marriage is automatically revoked unless it was made “in contemplation of marriage.” Without a new Will, the estate may pass entirely to the new spouse.

Sideways disinheritance - Children from a prior relationship may find themselves unintentionally cut out if assets pass to a new spouse, who may then favour their own children.

The harsh reality is that any of these legal risks can trigger inheritance disputes in blended families. A Solicitor can help avoid intestacy, ensure stepchildren are provided for, and prevent disputes between children and surviving spouses.

Why you should draft a new Will after remarriage

Marriage automatically cancels previous Wills, meaning that unless you create a new Will, your estate may not be distributed as you wish.

A carefully drafted Will should clearly state how your assets should be divided between a spouse, biological children, and stepchildren in the context of your new family setup. By having a new Will drafted after divorce and remarriage, you can make your intentions clear in a way that reduces the risk of later challenges.

In addition to your updated Will, you can draft a ‘letter of wishes’, providing guidance to executors and trustees on how you would like matters handled. Letters of wishes are not legally binding, but they can help the executor of your Will understand exactly what you want to happen to your estate.

How else can I protect my children’s inheritance in a blended family?

One of the most effective ways to protect your children’s inheritance if you are in a blended family is to set up a trust. Trusts are a powerful estate planning tool that can protect children’s inheritance while still providing for a spouse. Common trusts used for blended families include:

Life interest trusts - Whereby the surviving spouse can live in the family home or receive income from assets for life, but the capital is preserved for the children.

Discretionary trusts - Allow trustees to decide how to distribute assets between beneficiaries, which can adapt to changing family circumstances.

When considering trusts, it is important to appoint reliable and impartial trustees, be clear about timing, such as when children should inherit, and seek professional advice on potential tax consequences.

Another common way to protect the interests of your children from a previous marriage is to enter into a pre-nuptial or post-nuptial agreement with your new spouse. Again, while not legally binding, nuptial agreements set out your intentions from the outset. You can use a prenup or postnup to ringfence certain assets for children from previous relationships, clarify expectations between spouses in blended families, and reduce the likelihood of disputes if the marriage later ends. The courts in England and Wales increasingly give weight to such agreements if they are fair and entered into voluntarily.

In addition to Wills, trusts, and nuptial agreements, you can further protect your children’s inheritance by:

Carefully choosing impartial executors or trustees to avoid conflicts of interest if one side of the family feels disadvantaged.

Reviewing your estate plans regularly, especially when you remarry, and

Making lifetime gifts to your children

How can I avoid my Will being contested in a blended family?

Under the Inheritance (Provision for Family and Dependants) Act 1975, children and other dependants can contest a Will if they believe you failed to provide reasonable financial provision. It is not easy to make such a claim, however. To reduce the risk of such a claim being made by children from a blended family, it is important to seek legal advice when drafting documents to ensure they are valid and fair. Your Solicitor will be able to assess whether there is a likelihood that one of your children could make a claim for reasonable financial provision, e.g. if they are financially dependent on you or they have certain educational or care needs.

Final words

Protecting your children’s inheritance involves taking proactive action, including making a new Will after remarriage, considering trusts, and using nuptial agreements where appropriate. An experienced family law solicitor can provide tailored advice and ensure your wishes are respected.

Frequently Asked Questions

Q: Will my previous will be valid if I remarry?

A: No. Marriage automatically cancels an existing will unless it was made in contemplation of marriage. You will need to make a new will.

Q: How can I make sure my stepchildren inherit?

A: You must name them in your Will or consider adoption. Stepchildren are excluded from intestacy rules.

Q: Can I set up a trust to provide for my spouse and children?

A: Yes. Life interest trusts and discretionary trusts are common tools used to ensure that the needs of a spouse and children are met fairly.

Q: What happens if someone contests my Will?

A: A claim may be made under the Inheritance (Provision for Family and Dependants) Act 1975. Sound legal advice and clear planning are important to reduce this risk.

Q: How often should I review my will and estate plan?

A: It is advisable to review every 3 to 5 years, or sooner after major life changes such as marriage, divorce, or the birth of a child.