Will or Trust for a Blended Family? Questions to Ask Before You Decide

Earlier this month, we looked at estate planning for blended families and at the difference between a will and a trust. This article brings those two ideas together. If you are in a blended family in Wildomar, Lake Elsinore, Temecula or Menifee, how do you decide which approach fits?

There is no one answer for every family. But there are good questions that can guide the choice.

Why the choice can matter more in a blended family

In a first marriage where all the children are shared, many couples simply want everything to go to each other, then to the kids. In a blended family, "the kids" may mean different children for each spouse. That changes the picture.

The question is no longer only who receives your property. It is also when they receive it, and who decides what happens in between.

Where a simple will can fall short

A will can be a good fit for some families. In a blended family, a few limits are worth knowing about.

• A will usually goes through probate, the court process for settling an estate. That process can take time, has costs and is generally public.
• If your will leaves everything to your spouse outright, your spouse can usually decide where it goes next. Your children may or may not be included.
• A will takes effect at death. It does not help manage your property if you become ill and unable to handle your own affairs.

How a trust can be shaped for a blended family

A living trust is a legal arrangement that holds your property during your life and passes it to the people you choose. Because it can include detailed instructions that continue after you pass away, it can be shaped around a blended family's goals.

For example, a trust can be written to:

• Let a surviving spouse stay in the home or receive income for life.
• Pass what remains to your children after your spouse's lifetime.
• Set aside a share for your children right away, if that is your wish.
• Name a trustee, the person who manages the trust, whom both sides of the family can trust.

Whether these approaches fit your family is a question for an attorney who knows your situation.

One trust or two?

Some remarried couples create one joint trust. Others each keep their own separate trust. The choice often depends on what each spouse brought into the marriage, what was built together and how each spouse wants to provide for their own children.

In California, property earned during the marriage is generally community property, meaning it belongs to both spouses. Property owned before the marriage or received as a gift or inheritance is generally separate property. Keeping track of that difference can shape how a plan is set up.

Questions to ask yourself

Before you meet with an attorney, it can help to think through these:

• If I pass away first, what do I want for my spouse?
• What do I want for my children, and when?
• Do I want to include stepchildren?
• Who would I trust to manage things fairly for everyone?
• What did I own before this marriage, and what have we built together?
• Have I updated my beneficiary forms since I remarried?

Questions to ask your attorney

These can help you get the most from a consultation:

• Based on my goals, would a will, a trust or both make sense?
• How would my spouse and my children each be cared for under the plan?
• Can my spouse change the plan after I pass away?
• What steps are needed to fund a trust?
• How often should we review the plan?

Frequently asked questions

Plan for the family you have today

Your family may look different than it did years ago. Your plan should reflect that. The Briseno Law Firm helps blended families in Wildomar, Lake Elsinore, Temecula, Menifee and throughout Riverside County sort through these choices. This article is general information, not legal advice for your situation.

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