Blended families are becoming increasingly common in Australia. Recent data shows that they now account for around 12% of all families, that is over 311,000 households. These families often include children from previous relationships, which can create unique challenges when it comes to estate planning.
In Victoria, the Administration and Probate Act 1958 recognises stepchildren as “eligible persons” who may contest a deceased estate. This reflects the evolving definition of family and the need to consider individuals who may have been financially dependent on, or treated as part of, the deceased’s household.
To navigate these complexities, it is crucial for blended families to engage in thorough estate planning. A lawyer can employ techniques to assist blended families in their estate planning to ensure that the interests of all parties, including children from previous relationships, are adequately protected. These techniques include:
Use of Trusts: Trusts are a common tool in estate planning for blended families. For example, a “right of residence” trust can allow a surviving spouse to live in a property for the rest of their life while ensuring that the property ultimately passes to the children of the deceased spouse.
Changing Property Ownership: Converting property ownership from joint tenants to tenants-in-common allows each party to control the disposition of their share of the property through their will.
Involving Family Members: Consulting family members during the estate planning process can help manage expectations and reduce the likelihood of disputes after the death of a family member. This approach can also facilitate mediation of any issues that arise, potentially avoiding costly litigation.
With the right legal advice and open communication, blended families can navigate the complexities of estate planning effectively. A tailored plan can help ensure that everyone is provided for and that your final wishes are respected.
For more information or to make an appointment please call (03) 5445 3333 or email info@becklegal.com.au
