Parents in blended families warned not to inadvertently disinherit their biological children

A Senior Associate at South East law firm Furley Page has issued a warning to parents in blended families to ensure they are not inadvertently disinheriting their children by making assumptions about their estate.

With an estimated 780,000 stepfamilies in the UK, research from STEP, the professional body for trust and estate practitioners, has found that a lack of estate planning and communication in families is fuelling a significant rise in inheritance disputes. Conflict between children/stepchildren and the surviving parent, as well as unequal treatment of siblings, were highlighted as the most common source of friction.

For parents who die without a will, their estate will be distributed according to the intestacy rules, which favour spouses and biological children but make no provision for stepchildren. This means that in many cases the entire estate would pass to the spouse, but when they die, their estate (including assets previously inherited) could pass solely to their own biological/adopted children, or even to a new spouse if they remarry. In both cases, biological children from a previous relationship would receive nothing.

In response to the new research, Melanie Christodoulou, Senior Associate in the private client team at Furley Page, said: “The rise in inheritance disputes from blended families is really concerning, but it is possible to do something about it.

“The simple way to ensure loved ones are accounted for is to write a will that includes clear and effective arrangements in place for loved ones. This way you can balance the needs of your current spouse or partner with the needs of your children from an earlier relationship, while also ensuring that your estate ultimately passes in line with your wishes. Without careful planning, even well-intentioned arrangements can lead to unintended outcomes and, in some cases, costly and distressing disputes.”

A key challenge for blended families is how to provide adequately for the surviving spouse or partner, while also protecting the interests of children from an earlier relationship. Leaving everything outright to a partner may seem the simplest solution, but it can carry significant risks, as once assets have passed outright, the remaining partner will have complete control.

Melanie continued: “Taking the easiest route by leaving everything to your partner can be problematic, especially if your children are young, if relations between your children and your partner are strained, or if your partner subsequently remarries or enters a new relationship. In these circumstances children could be unintentionally disinherited, but there are straightforward ways to avoid this situation.”

Trusts are often used as part of wills for blended families, as they allow an individual to retain greater control over how their estate is used and who ultimately benefits. For example, a life interest trust can allow a surviving spouse to live in the family home or receive income from the estate during their lifetime, while ensuring that the capital passes to other beneficiaries.

Letters of wishes alongside a will can also be extremely helpful as a supporting document. While not legally binding, a letter of wishes allows an individual to clearly explain in their own words the thought process behind the structuring of their will. They can also give practical guidance to executors and trustees, helping them to exercise their powers in line with stated intentions.

Melanie concluded: “Inheritance disputes are rising rapidly in blended families, but they can be avoided with some careful planning and regular reviews of wills and wishes. The majority of people have a clear view of what they wish to happen to their estate, so it makes sense to get those wishes in writing and avoid leaving your nearest and dearest behind in conflict.”