Blended families have specific estate planning considerations that they have to work through before they make the plan. When the blended family is part of the LGBTQ+ community, there are even more considerations.
A spouse, partner, child from a prior relationship, adopted child or chosen family member may all be parts of the family structure. Without clear planning, property may not be distributed in the way the decedent intended.
Planning to reduce conflict
Conflicts can arise in cases when the surviving relatives disagree about beneficiaries, but the issue goes far beyond that. They can also include who will make medical decisions if the creator is incapacitated or who will manage final arrangements if the decedent dies. These can be difficult in cases involving LGBTQ+ families, particularly if the relationships were strained or if the partner’s role wasn’t legally documented.
Preventing accidental disinheritance
The creator’s will or trust can help to clarify who will receive what property. Specific terms might be set. This is important for current spouses, partners and children from prior relationships because they may all have different rights. Clear documents can help to minimize the chance that someone will be unintentionally left out of the estate plan.
Looking beyond the basics
Besides the estate plan, the creator should look into beneficiary designations, which are common on financial accounts and life insurance policies. These transfer upon the creator’s death and don’t require the use of a will. Ensuring the designations are current is critical, and it can prevent assets from going to former partners or others who shouldn’t be beneficiaries.
Creating plans for incapacitation
Estate planning will also cover what happens if the creator becomes incapacitated. This should include health care directives, powers of attorney and HIPAA authorizations. Together, these specify who can receive medical information and make decisions if the creator becomes unable to speak for themselves.
When minor children are involved, the planning is critical. Guardianship designations and financial planning are both important. These make the parents’ wishes known if a crisis occurs and they’re unable to care for the child.
A comprehensive estate plan is crucial for all adults, but especially for the LGBTQ+ community. Working with someone who understands the specific challenges that are present may help to ensure the estate plan is legally enforceable.
