The Impact of Step Family Dynamics on Estate Planning

Over 40% of Americans have at least one step-relative – either a stepparent, a step or half sibling or a stepchild – according to the Pew Research Center. Whether or not you already have a step-relative, one of your relatives may have a step-relative – now and in the future – and failing to consider this could have unintended consequences for your own estate planning.

Consider the 2013 North Dakota case involving two trusts set up by William and Patricia Clairmont for their grandson, Matthew. The trusts named “the brother and sisters” of Matthew as contingent beneficiaries, meaning they would be the trust beneficiaries if Matthew died. Presumably, this was intended to benefit any grandchildren they might have through their daughter, Cindy, Matthew’s mother. Unfortunately, things didn’t go according to plan. Cindy divorced Matthew’s father, and Matthew’s father went on to have two children with his second wife. Matthew then died prematurely and unexpectedly at the age of 25

Under North Dakota law, Greg’s two children with his second wife were technically “brothers and sisters” of Matthew and, thus, eligible beneficiaries under the trusts. This was not at all what the Clairmonts intended, and they spent significant time and money convincing the North Dakota Supreme Court to issue a ruling reforming the trusts so that the children of Matthew’s father would not be included as beneficiaries in them.

The Clairmonts obviously did not expect the series of unfortunate events that occurred, begging the question of how anyone can avoid such unintended issues in their estate planning. How can you ensure that your wishes regarding your estate planning are clear in the face of all of this potential uncertainty?

Consulting with an experienced estate planning attorney who takes the time to understand your wishes is critically important. Estate planning attorneys are trained to consider all of the potential outcomes and craft a plan that not only meets your estate planning goals, but which builds in safeguards for events you never anticipated.

When a divorce occurs, when someone becomes disabled, and when someone dies “out of order” – these are all stressful events that can wreak havoc on an estate plan, but with an experienced estate planning attorney, they will have been planned for long before they occur, making your estate plan one less thing you have to worry about when a crisis occurs.

If you would like to speak with an experienced elder law attorney regarding your situation or have questions about something you have read, please do not hesitate to contact our office at 1 (800) 680-1717. We look forward to the opportunity to work with you.