Don't Let Your Blended Family "Run Wild": Planning for Blended Families
Dale Tamburro • November 27, 2024

Why Your Unique Family Requires a Customized Estate Plan

The term “blended families” encompasses a diverse range of family dynamics, which makes them so unique.  Many important factors are involved, including prior marriages for each spouse, the cause of the end of a previous marriage, children from those marriages, the residence of prior children, the relative wealth of spouses, and more. However, despite the specific circumstances, blended families present unique challenges in estate planning and inheritance arrangements.

 

I’ve been helping families navigate this process since 1998, and I’ve seen firsthand the intricacies of securing a family’s future, mainly when it includes children from different relationships.

 

Having a family that includes the children from previous relationships can make things more complex because of competing interests or concerns about how some choices might be perceived. Clients often come to me burdened by stories they have heard about spouses unintentionally disinheriting children from previous marriages or assets becoming entangled following a remarriage. This is a legitimate worry but can be prevented with the right estate planning tools. By preparing the proper estate plan, which often includes carefully drafted trusts, we can safeguard your children’s inheritance, irrespective of future changes in your marital status.

 

While proper legal documents are important to addressing blended family issues, solutions can only be reached by professionals who seek to understand the emotional impact, not just the legal impact, of these problematic issues. Left unaddressed, the tensions withing blended families can powerfully influence how family members perceive and receive estate plans. As an estate planning attorney, my role often extends beyond legal advising.

 

In estate planning for blended families, a range of legal tools are utilized to address the unique dynamics and concerns that arise. By employing these legal tools thoughtfully and strategically, estate planning for blended families can effectively address complex family dynamics and provide peace of mind for all involved parties.

 

Every family is unique, and a one-size-fits-all approach does not work for estate planning in blended families. What works for one family many not work for another. That’s why a customized estate plan tailored to your specific situation is essential. My role is to listen, understand, and craft a plan that aligns with your wishes, ensuring all family members are considered and protected even as families change over time.

 

If you’re navigating the complexities of a blended family, please contact us. Whether you are a current client with evolving family dynamics or someone considering estate planning for the first time, a consultation or a review of your current plan can be invaluable and set you on the right path. Together, we can create a plan to protect and provide for your unique family situation, ensuring your family is protected and cared for. Remember, it’s not just about drafting documents; it’s about securing your family’s future with care and foresight.


By Dale Tamburro November 27, 2024
The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
By Dale Tamburro November 27, 2024
IRS Announces 2025 Gift and Estate Tax Exemptions Annual Gift Tax Exclusion Effective January 1, 2025, you will be able to make individual gifts of up to $19,000 in the calendar year (an increase from $18,000 in 2024) tax-free. In other words, giving more than $19,000 to any individual in 2025 means you may have to file a gift tax return. For a married couple filing jointly in 2025, the annual gift tax exclusion will be double that: $38,000. Estate Tax Exemption Meanwhile, the IRS has announced that the federal estate tax exemption will jump to $13,990,000 per individual in 2025, up from $13,610,000 million in 2024. Again, married couples’ exemption will be twice that, at $27,980,000 million. Over the course of your lifetime, you would therefore be able to give away up to $13,990,000 (as of 2025) before you owed a federal gift tax. If the total worth of your estate falls below this amount, your estate will not owe federal estate taxes. (Note that state estate tax is a different matter, which varies depending on where you live.) The estates of most Americans fall far below the current gift and estate tax thresholds. However, for affluent taxpayers who pass away in 2026 or later, these thresholds are on track to decrease by about half. As a result, a greater number of estates will become taxable. Tax bills could be higher going forward, too. Note that the IRS will allow you to give away a total of $13,990,000 (as of 2025) during your lifetime before you owe a gift tax. The End of the Tax Cuts and Jobs Act (TCJA) Is Approaching At the end of 2025, the Tax Cuts and Jobs Act is slated to sunset unless Congress takes action. The sunsetting of the TCJA will have a significant impact on taxpayers. When the TCJA expires, the federal estate and gift tax exemptions will return to what they were in 2017 (around $5 million, with an adjustment for inflation). To avoid this, lawmakers would have to alter the exclusion limit prior to December 31, 2025.
Share by: