Estate planning often comes with unique challenges when you have a blended family, especially if you have both biological children and stepchildren.
How can you make sure all your children inherit from your estate? And what estate planning tools can help you achieve this goal?
First, here is an important fact you should know now: Stepchildren do not have automatic inheritance rights. Luckily, there are many ways you can change that.
Legally adopted stepchildren have equal inheritance rights
If you pass away without a valid will, Maryland’s intestacy laws pass your estate down to your next of kin, which typically includes your spouse, biological children, parents and so on. This line of succession will not include your stepchildren unless you legally adopt them.
Stepparent adoption creates a next-of-kin relationship with your children. This means they have equal inheritance rights as your biological children. They also gain the legal right to contest your will if necessary.
Estate planning instruments give you more control over inheritances
While adoption can provide many benefits beyond inheritance rights, it is important to consider other estate planning instruments, such as:
- A will: You can name your stepchildren as beneficiaries in your last will and testament. You can also allocate a specific amount or designate certain assets to them.
- A trust: Similar to a will, your stepchildren can be named beneficiaries in a trust. A trust allows you to decide what goes to your beneficiaries and when they receive their share.
- Beneficiary designations: Aside from wills and trusts, you can also list your stepchildren on life insurance policies, retirement funds and other accounts so they can receive the proceeds after you pass away.
Each of these instruments offers unique pros and cons. If you want to make sure your estate plan is tailored to your family’s needs, consider seeking guidance from an estate planning attorney.
Proactive measures can help avoid disputes
It is not uncommon for families to disagree over inheritances. For some blended families, biological children may feel that they have more legal claim over your assets than their stepsiblings.
If you anticipate these kinds of disputes, here are several ways to prevent them:
- Including a no-contest clause in your will so no one can challenge it
- Having an honest conversation with family members about your estate plan
- Using specific language to avoid ambiguity or confusion
Estate planning can be challenging, but with the right tools and guidance, you can rest easy knowing your family is secure.
