Unfortunately, blended family disputes over wills and estates are on the increase. This is a result of more relationships dissolving (due to separation, divorce or the death of a partner) and many people moving on to new relationships - often forming a blended family in the process, of which there are several types:
There has also been an increase in grandparent-led families, and the emergence of families parented by lesbian, gay, bisexual, transgender or intersex couples.
Ways for testators to avoid disputes is to restructure their financial affairs, sort out ownership of assets and discuss with blended family members what they can expect from their estate.
Traditionally, a couple have made wills that gives each person’s interest in the family home and other assets – to each other. Upon the death of the surviving partner, the combined estates of both families are split between all children. However, there is a risk that after one partner dies the surviving partner changes his or her will to benefit only their children. This can be prevented with a “mutual wills agreement” that cannot be altered.
Alternatively, the will of the deceased spouse can establish a trust over the assets. This puts in place mechanisms for protecting children of a previous relationship whilst providing for the needs of the current spouse – such as an ongoing income.
Chantelle Moore
Solicitor
Wills & Estates | Family Law | Commercial Law
cmoore@scammell.com.au
*This information is current at the time of publication. For accurate legal advice, please contact Scammell & Co on 08 8440 270.
