09/06/2024
Blended Family Planning: Navigating the Complexities
Planning for blended families can be intricate, emotional, and multifaceted. Many blended families wish to ensure that their spouse enjoys the family home, pension, savings, and RRIF assets, while also making sure their own children receive their fair share of the estate.
Here’s a typical scenario:
Bob and Sue, both previously divorced, remarried at age 45. Bob has 2 adult children, and Sue has 2 adult children. They consider all 4 children to be equal.
Scenario 1 – Early Passing
If Bob or Sue were to pass away in their 40s or 50s, the surviving spouse might enter a new relationship, potentially bringing additional step-children into the mix. If Sue leaves her assets to Bob to distribute among the 4 children upon his passing, but Bob remarries or enters a new common-law relationship, Sue’s children could end up with fewer assets, or none, if the Will is changed or assets are split among more children.
Scenario 2 – Later Passing
If Bob or Sue passes away at an older age, when remarriage or new relationships are less of a concern, there are still potential issues. Even if they agree to never change their Wills, family dynamics and relationships among the children and their spouses can complicate matters. There is a risk that the surviving spouse could be influenced to change the Will, or that the Will could be contested, leading to unexpected disputes.
Ultimately, Bob and Sue want all 4 children to inherit equally, but many variables can arise once they pass away that might be out of the surviving spouse's control.
In an upcoming post, we’ll explore strategies for blended family planning to help protect your assets and ensure fair distribution.
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