Blended families are becoming more common in Australia, and this trend is set to continue. However, when it comes to estate planning, default inheritance laws may not align with your client's wishes, especially if they want to provide for their current spouse as well as children from previous relationships.
Without a clear plan, assets could pass solely to the surviving spouse, unintentionally disadvantaging children from prior relationships. Tailored estate planning solutions, such as testamentary trusts, can help ensure a fair and structured asset distribution, balancing all family members' needs.
Key Action Steps for Advisers:
✅ Identify Goals – Determine how assets should be distributed between spouse and children.
✅ Consult Professionals – Work with estate planning experts to navigate legal complexities.
✅ Establish Trusts – Use testamentary trusts to safeguard assets and set clear inheritance terms.
✅ Document Decisions – Ensure all plans are legally binding and clearly recorded.
✅ Communicate Intentions – Encourage open conversations to prevent misunderstandings.
✅ Regular Review – Update plans as family dynamics, laws, and financial circumstances change.
Advisers play a crucial role in helping clients protect their legacy. Are your clients aware of these risks? For example, Inherit estate planning health check provides a good starting point for advisers to foster an estate planning conversation without taking a legal advice risk.
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