9114 / What basic planning considerations must be accounted for in blended family situations?

When an individual enters into a second or subsequent marriage, it is entirely possible that he or she has entered into agreements with a prior spouse (whether in the form of prenuptial or postnuptial agreements, divorce or property settlement agreements, see Q 9092 to Q 9096) that must be taken into account when entering into estate planning strategies in contemplation of providing for a spouse from a subsequent marriage. These existing agreements could provide for continuing support obligations, required funding of life insurance policies for the benefit of a former spouse or previously agreed upon beneficiary designations on retirement accounts or other financial products.

Importantly, many individuals who enter into second or subsequent marriages already have children from a prior marriage, and may wish to ensure that those children are provided for before leaving any assets to stepchildren. Both accurate, updated beneficiary designations ( Q 9115) and trust arrangements ( Q 9123 to Q 9124) can be useful in this context.

Other issues can arise when there is a disparity in wealth or age between the spouses. Disparities in wealth can require planning to fully use the federal estate tax exemption (i.e., either through trust arrangements or by taking advantage of portability ( Q 9121 to Q 9122)) of both the wealthier and less wealthy spouse. Disparities in age can lead to conflicts between adult children from prior marriages and stepparents that should be addressed in estate planning (i.e., via trust planning and open conversation) in order to ensure that a decedent’s wishes are properly carried out.

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1.  Del. Code. Ann. Tit. 12, § 3570(4).

2.  Del. Code. Ann. Tit. 12, § 3570(8).