‘Inheritance planning for a blended family often involves more detailed thought and planning than people expect,’ says Karis Ryland, Wills and Later Life Advisor in the private client team at QualitySolicitors Parkinson Wright. ‘Simple wills that leave everything to a spouse or partner, and then to children, do not always work well for modern family arrangements - particularly where there are children from previous relationships or a long-term partner to provide for.’
Karis highlights the key issues you should consider when making a will for a blended family.
Providing for your partner and your children
One of the most common challenges is deciding how to provide adequately for your surviving spouse or partner, while also protecting the interests of your children from an earlier relationship.
You may feel that leaving everything outright to your partner is the simplest solution, particularly if you trust them to provide for your children later. While this approach works for some families, it carries significant risks. Once assets pass outright, your partner will have complete control and can spend, gift or redirect those assets as they see fit.
This can be problematic if:
- your main asset is the family home;
- your children are still young or financially dependent;
- relationships between your partner and your children are strained; or
- your partner remarries or enters a new long-term relationship.
In these situations, your children could be unintentionally disinherited, even if that was never your intention.
Using trusts to strike the right balance
Trusts are often a key feature of wills for blended families, as they allow you to retain greater control over how your estate is used and who ultimately benefits.
A life interest trust (sometimes called an ‘interest in possession’ trust) can allow your surviving spouse or partner to live in the family home or receive income from your estate during their lifetime, while ensuring that the capital ultimately passes to other beneficiaries, usually your children. This structure can provide security and stability for your partner, while reassuring your children that their inheritance has been protected.
In other situations, a discretionary trust may be more appropriate. This gives your trustees flexibility to decide how and when assets are distributed, taking into account changing circumstances such as financial need, health issues, relationship breakdowns or tax considerations.
It is important to take advice when considering trusts, as different types of trust can have very different tax consequences. The inheritance tax, capital gains tax and income tax treatment can vary depending on the trust structure used and on your personal circumstances. Whether you are married or in a civil partnership, as opposed to cohabiting, can also be highly relevant, particularly when considering available tax exemptions and reliefs.
In many cases, a trust is the most practical way to help you balance competing interests, protect vulnerable beneficiaries, and reduce the risk of conflict later.
Protecting your children’s inheritance
If you have children from a previous relationship, you may be particularly concerned about ensuring that they ultimately receive the inheritance you intend for them.
Without appropriate planning, assets can easily pass outside your family line. For example, if your partner inherits assets outright and later remarries, those assets may pass under their own will to a new spouse or stepfamily, rather than to your children.
Trusts, combined with careful drafting, can help ensure that your children inherit at the appropriate time, while still allowing your partner to be supported during their lifetime.
You should also consider assets that may fall outside your will altogether, such as pensions, life insurance policies and jointly owned property. These arrangements should be reviewed alongside your will to ensure they align with your overall estate planning objectives.
Inheritance Act claims and the risk of disputes
Wills involving blended families can be more susceptible to challenge after death.
Under the Inheritance (Provision for Family and Dependants) Act 1975, certain individuals may be able to bring a claim if they believe your will (or the rules of intestacy) does not make reasonable financial provision for them. This may include:
- your spouse or civil partner;
- a former spouse who has not remarried;
- a cohabiting partner;
- your children (including, in some circumstances, adult children); or
- anyone who was financially dependent on you.
If expectations are unclear, or if provision appears unequal, disputes can arise and these claims can be expensive, time-consuming and emotionally draining for your family.
Clear drafting, realistic provision and careful consideration of potential claims can significantly reduce the risk of a successful challenge. Supporting documents, such as a letter of wishes, can also play an important role.
Keeping your will under regular review and the role of a letter of wishes
Keeping your will under regular review is particularly important if you have a blended family, as your personal and financial circumstances may change over time.
Marriage automatically revokes an existing will unless it was made in contemplation of that marriage. Divorce does not revoke a will, but it generally treats a former spouse as having died for inheritance purposes, which can lead to unintended consequences if your will is not reviewed. New relationships, stepchildren, changes in wealth, or the purchase or sale of property can all affect whether your will remains appropriate.
Alongside a well-drafted will, a letter of wishes can be an extremely helpful supporting document.
A letter of wishes is not legally binding, but it allows you to explain in your own words why you have made certain decisions in your will. This can be valuable if your estate is not divided equally, or if you have included trusts that give executors or trustees discretion over how assets are applied.
For example, your letter of wishes might explain:
- why your partner has been given the right to remain in the family home;
- why your children from an earlier relationship will inherit at a later stage;
- why different children have received different levels of provision; or
- how you would like your trustees to balance competing needs if circumstances change.
Letters of wishes can also give practical guidance to executors and trustees, helping them exercise their powers in line with your intentions. Importantly, they can usually be updated more easily than a will, making them a flexible way to reflect changes in your family dynamics or priorities without needing to redraft the will itself.
How we can help
We regularly advise clients on wills and trust structures tailored to a blended family. We can help you think through different scenarios, identify potential risks, and put clear, robust arrangements in place to reflect your wishes.
Our aim is to help you plan with confidence. With the right advice, you can protect your partner, provide fairly for your children, and significantly reduce the risk of disputes in the future.
For advice on making or reviewing a will for a blended family, please contact Karis Ryland or a member of our Wills and Later Life team on 01905 721600 or via email worcester@parkinsonwright.co.uk
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.