Leaving money to loved ones is not always straightforward or tension-free in a blended family. Planning and communication are essential.
The families of Pablo Picasso, John Lennon and turkey tycoon Bernard Matthews all have one thing in common: they’ve found that inheritance and blended families can be an awkward mix. The details of each story vary, but the common theme is the fact that all three had children from different relationships and this led to all three estates becoming caught up in legal wrangles.
Pitfalls aplenty
Regular readers of Lindsays Life will know already that making a Will is an important part of ensuring your loved ones are looked after following your death and spared the stress of dealing with ‘intestacy’ (i.e. when someone dies without a Will). With a blended family, this becomes even more critical; the Will must also take account of some of the legal and emotional issues associated with blended families.
1. Conflicted loyalties
When planning their Will, people are often caught between leaving money to older children from a previous relationship or to a subsequent partner. There’s no simple or right answer here, but an experienced lawyer can help with practical ideas and solutions.
2. Legal Rights
Scotland is unlike England in giving biological children and spouses ‘Legal Rights’ even when they are deliberately excluded from a Will. This means, for example, that children estranged from a parent for decades could choose to claim some of their estate after death. These rights apply only to ‘moveable’ property, not land or buildings, so inheritance planning can take account of this.
3. Not all family members are equal
Cohabiting partners and stepchildren have no automatic right to inherit in Scotland. If you want to pass assets onto them, you need to put this in a Will, while also taking account of the Legal Rights of other family members.
4. Cross-border issues
Complexities can arise if you have assets (e.g. property) in jurisdictions with different succession rules. Legal disputes could arise over local forced heirship rules or which jurisdiction’s inheritance laws should apply.
'We need to talk’
Many people don’t want to talk about any of this stuff, especially when there is tension between old and new partners and families. But awkward as these conversations can be, it’s better to have them. To quote the Financial Times, “Estate planning is not complete until it is communicated to heirs”. Don’t let the contents of your Will be a surprise to your family.
Kirsty Preston Associate, Private Client Services
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