Blended families are becoming far more common in Australia. Every blended family is unique and has its own complexities and challenges. From an estate planning perspective, this means that careful consideration needs to be given to the needs of children and second spouses to ensure that all are adequately provided for.
In the traditional nuclear family with the Mum and Dad and their children, if one of the parents dies without a Will, then in accordance with the law of intestacy, the whole of the estate will pass to the surviving spouse, which is usually the way that the couple would have wanted their Wills drafted anyway.
In a blended family where some or all the children are not the children of the marriage, if a spouse dies without a Will, then the estate will be divided in accordance with the statutory order, meaning that the surviving spouse will receive the personal effects of the deceased, the statutory legacy ($350,000 indexed to CPI – currently about $450,000) plus one half of the remainder of the estate. The children of the deceased share the other half of the estate in equal shares. The law has decided that this is a fair way to divide the estate where there is a second spouse, however, the reality is that this may be the least desirable way to share the estate between the surviving spouse and the children.
The best way to avoid this outcome is to make a Will which deals with your individual circumstances.
It is important to consider the nature of the relationships and the needs of all members of the family. Different considerations will apply depending on the age of the children, the nature of the relationship between the second spouse and the deceased’s children and they type, value and ownership of assets.
Call Cominos Family Lawyers on 8999 1800 to discuss your estate planning needs and how best to provide for your loved ones on your death.