Finding love a second time is a gift and can mean you are now part of a new family that is a blend of two. Though you and your spouse may love all the children in this new family it is important to note that the law may not provide for them if something were to happen to you, the biological parent. This is because the law in Kentucky generally leaves all assets to a surviving spouse.
The surviving spouse may have the best of intentions but no one knows what the future can bring. As a result, it is wise to take steps to make sure everyone you love is provided for in the future.
How does Kentucky law handle blended families?
As noted above, unless you dictate otherwise, when you pass the law in Kentucky would generally transfer all assets to a surviving spouse. Exceptions can include things like beneficiary designations, discussed more below.
How can I better ensure I provide for my loved ones?
The first step is to take an accounting of all your assets. The type of asset will guide its transfer. The following checklist can help:
- Beneficiary designations: Certain assets transfer by way of designation. You likely filled out paperwork for a retirement asset or bank account when you first started a job or opened the account that included a beneficiary designation. Review who you named for the designation to make sure the asset goes to who you intend to receive it.
- Title: Ownership generally guides the transfer of real estate. Review the title to get a better idea of how the property will transfer.
- Debts: Check to see if anyone else is on a car loan or mortgage. Depending on the language used in the agreement, this individual could be solely liable for the debt.
- Other assets: Most other assets transfer as guided by local law or through an estate plan.
An estate plan tailored to your family’s needs can not only better ensure you protect those you love but also reduce the need for probate, a court process that can take time and expense to distribute your assets.
What should I include in my estate plan?
Most blended families find the following legal tools helpful:
- Will: A will allows you to identify beneficiaries, name a personal representative and include guardians for minor children.
- Revocable living trust: This legal tool can help to centralize assets, reduce probate, set distribution rules and create continuing trusts for minors or young adults.
- Power of attorney: This allows you to authorize another to handle financial obligations and health care decisions in the event of incapacitation.
Parents can also use trusts to provide support to the surviving spouse while preserving remainder interests for children from the prior relationship. These are just a few of the legal tools that can help you craft an estate plan to meet your family’s needs.
Estate planning for blended families is a legal risk management process that can serve to prevent accidental disinheritance while also protecting a surviving spouse and reducing the need for probate. When done wisely and proactively, it can also reduce the risk of future family conflict allowing you to rest assured your family is cared for and your legacy continues.