How to Protect Assets From Stepchildren

How to Protect Assets From Stepchildren

Mark Henricks Wed, April 26, 2023

Parents in second marriages may want to leave assets to their own children while ensuring that stepchildren do not inherit. When stepchildren inherit, it can create resentment leading to legal disputes that can cost the estate significantly in delay and attorney fees. By taking specific estate planning steps, however, you can effectively protect assets from stepchildren. A financial advisor can inform you about your options when planning an estate involving stepchildren.

Stepchild Concerns

Estate planning is nearly always worthwhile but can be extra important when you have stepchildren. If a stepchild inherits some of your assets, your own children may feel they have been cheated of their rightful inheritance. To protect their interests, children and other heirs may contest awards to stepchildren. Court cases from these efforts can delay settlement for years while legal fees reduce the size of the estate.

Your children are recognized as heirs to your estate even in the absence of a will or other document naming them as beneficiaries. Stepchildren do not have the same rights. In most cases, they do not inherit from a deceased stepparent’s estate unless specifically listed as beneficiaries in estate planning documents.

However, stepchildren still may receive assets from your estate if your spouse dies after you and leaves assets to their children. Preventing stepchildren from ever receiving assets from your estate can be done, but requires definite action to exclude them as beneficiaries.

Protective Measures

If your partner from a second or later marriage dies first, you usually don’t have to do anything to prevent stepchildren from receiving assets you control. Even after an intestate death that occurs without a valid will, stepchildren are typically not recognized as having any right to assets in the estate. However, a few states do grant stepchildren some rights of inheritance. If you live in one of these jurisdictions or just want to be sure, you can take protective measures.

If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Using a Will

A will can be used to name specific people, including stepchildren and exclude them from receiving benefits from the estate. Simply leaving the names of any stepchildren out of the last will and testament is likely to be enough to keep them from acquiring any of your assets after your death. To be certain, you can designate by name stepchildren and anyone else you don’t want to get any assets when you die.

Trusts

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/protect-assets-stepchildren-130020299.html

Previous
Previous

Iraqi News Highlights Wednesday Evening 4-26-23

Next
Next

Wednesday Evening Chat with MarkZ 4-26-2023