For most people, an estate plan is a way to avoid probate and ensure their assets are distributed in a manner of their choosing. However, many fail to create estate plans or do not create them effectively and then their assets are subject to state laws. Arizona intestacy laws do not always provide the results you planned on. This is particularly true for blended families or for individuals with children from a prior relationship. Let me give you an example of estate planning gone wrong.

I had a client (wife) who was married to a man that had two sons from a prior marriage.  For ease of telling this story, we will call them the “good son” and the “bad son.” Wife had been married to this husband for over 30 years. The husband thought he had set everything up according to his plan. His plan was to leave his house to his current wife (my client) so she would have a home to live out her retirement years in and be taken care of. He left half his life insurance policy to the good son, and half to his wife to help pay off any debt and have some cash to live on. He did not leave anything to the bad son…or so he thought.

After his death, the wife discovered that her husband had messed up the deed to their home and it did not have right of survivorship. This meant that his half of the house needed to go through probate before it could pass to the wife; however, he did not leave a will–so Arizona intestacy laws came into play. In this situation, the law states that half of the husband’s community property goes to the two sons. As you can imagine, the good son assigned his interest in the house back to the wife, his stepmother, because that was his father’s intention, but the bad son demanded she sell the property and pay him his portion of the proceeds. This is not at all what the husband had wanted or planned for, but this is what the state law demanded. My client was frantic as she had to decide what to do with her house.

 

Arizona Laws of Intestacy Control Distribution When You Do Not Have A Will or Trust in Place

If you have children from a prior relationship, you must be familiar with the intestacy laws in the state that you live in and have property in. You also need to be aware of community property laws if you live in a community property state. Arizona is one of nine states that have community property laws.  If those laws do not coincide with your wishes, it is imperative that you create an estate plan to distribute your assets as you intend.

If you have a blended family, you may have to decide how to preserve assets for your children but not disinherit your spouse. It is common in estate planning for a spouse to leave all their assets to the surviving spouse and then once the surviving spouse passes, all the assets go to the children. However, when there are children from prior relationships, there is no guarantee that the surviving spouse will provide for your children after you pass. Blended families often come with a diverse set of relationships. You may have biological children, stepchildren and even children from the new marriage. These dynamics can complicate decision-making regarding assets, guardianship, and inheritance. For instance, if husband has two children from a previous relationship, wife has two children from a previous relationship and husband and wife had one child in common, the first spouse to pass may want to provide for the surviving spouse who is also the parent of the child in common, but the deceased spouse may also want to make sure that some of the assets are preserved for their children not in common with the surviving spouse. This is especially true when some of the assets have passed down for generations and the deceased spouse wants to be sure the assets remain in the family line. There are ways to accomplish this goal with specific estate planning from an experienced attorney.

 

Trusts Are Crucial Tools For Blended Families

Trusts are particularly helpful with blended families, second marriages or if you have biological children outside of the current marriage. Trusts allow you to control how and when your assets are distributed, which is especially useful if you have young children or want to ensure that your spouse is taken care of while also providing for your children from a previous relationship.

You must also be mindful and careful if you are divorced. In some cases, your ex-spouse may have rights to certain assets or benefits. Be aware of any legal obligations or agreements that may impact your estate planning decisions. Understanding your divorce decree and/or any property settlement agreements is critical when creating an estate plan with your new situation and new family.

Work with an experienced Estate Planning Attorney in Mesa

Estate planning for blended families or second marriages requires careful thought and consideration. By taking the time to communicate openly, understand your family structure, and work with professionals, you can create a comprehensive estate plan that protects your loved ones and honors your legacy. Remember, the goal is to ensure that your wishes are respected and that all family members feel included and valued in your planning process. Click below to set up a free consultation with me today to discuss your situation.