Marriage, Business, and Blended Families: How to Protect Your Assets From Complex Life Events
Even a straightforward estate plan requires careful consideration of an individual’s goals, assets, and values. But when you add second marriages, blended families, and businesses into the equation, estate planning becomes even more complicated. This is why we recommend working with an Oklahoma estate planning lawyer who can learn about your goals and help you meet them.
At Entz Burton & Associates, we are passionate about helping individuals and families make the most of the assets they’ve worked so hard to earn. Attorney Jeffrey Burton has spent over ten years helping clients create and maintain estate plans that reflect their values and long-term goals. Call us at 800-633-7230 to set up a consultation with our estate planning law firm now.
Why Second Marriages and Blended Families Require Special Planning
Blended families face unique challenges and concerns when it comes to estate planning. Children from a previous marriage, a new spouse, and extended family members all have different expectations—and you likely have different plans in mind for each of them when it comes to the division of your assets. If you don’t plan for these situations early, your assets will be distributed per the laws of intestate succession in Oklahoma.
For example, people who pass away without a will often assume that their spouse will honor their wishes (spoken or assumed) and distribute their estate to their children from their first marriage, the children they share together, and themselves. However, in many states, the law gives the surviving spouse everything or close to everything. Your children from your first marriage are at risk of walking away with nothing.
Blended families also see their fair share of disputes. When assets aren’t distributed in a way that children and stepchildren perceive to be fair, conflicts may arise. This is even more likely if instructions are murky or haven’t been updated in years. A clear and thorough estate plan fully outlines your wishes, making it harder for loved ones to dispute the distribution of assets.
Separate Property Trusts and How They Can Protect Your Legacy
You may consider splitting property up into separate trusts in order to protect your assets. A separate property trust keeps premarital assets—for example, property and savings accounts intended for children from your first marriage—separate from marital assets that may be distributed to your spouse and other loved ones. This ensures that the assets are not unintentionally commingled.
This type of estate planning tool is especially useful if you want to guarantee your children certain assets, you have property from a previous marriage you want to protect, you want an inheritance you received to stay with your children, or you want to keep certain assets separate should you ever get divorced.
This type of setup protects everyone and minimizes the risk of disputes down the line. Consider discussing it with your estate planning attorney if you have assets you need to safeguard.
Risks Faced by Business Owners
Business owners must take steps to protect their assets and their business after their death. Business interests can get tangled up in both marriage and inheritance concerns, both of which could threaten the future of a business. If you own one or more businesses, it’s crucial to work with an estate planning lawyer to prevent:
- A spouse unintentionally taking over part of your business
- The business becoming entangled in divorce litigation
- The business not having a clear successor after your passing
- The business unintentionally passing to a child or stepchild with no interest in the company
There are various tools an estate planning law firm may use to protect your company, including buy-sell agreements, business interest trusts, life insurance planning, and general business succession planning that adapts as your needs evolve over time.
Common Mistakes That Lead to Conflict
Estate planning attorneys have seen all sorts of mistakes that ultimately lead to preventable conflict within a family. These mistakes can be expensive and wreak havoc on family relationships:
- Relying on a will to outline and enforce your final wishes
- Assuming that your spouse will automatically provide for their stepchildren
- Commingling premarital and marital assets
- Failing to update plans after divorce, remarriage, changes to your business, or other major life changes
Make Your Estate Plan Work for You With Entz Burton & Associates
With our team, you can create an estate plan that makes the most of everything you’ve worked so hard to build over the years. Let’s talk about your next steps. Call us at 800-633-7230 or send us a message online now.
Attorney J. Michael Entz at Entz Burton & Associates is an experience lawyer in estate planning law, business formation and asset protection serving the families in Oklahoma City and Weatherford office.
