Blended families on their own have an opportunity to launch new traditions and relationships, but there are often pitfalls and challenges associated with finances. According to research conducted by the Stepfamily Foundation, approximately 1300 new stepfamilies come into existence every single day and at least 41% of individuals living in the United States have at least one step relative. There are four key tips that you can implement.
One of the first things you can do is to define the different types of accounts. A major challenge for stepfamilies can be in determining how to divide finances into mine, yours and ours.
Many couples getting remarried typically begin with separate accounts used to pay personal expenses, but may also have a joint account as well. The second step you need to take to protect yourself in a blended family is to update and review your documents. The beneficiaries named under various financial and life insurance accounts probably need to be updated. Your third step when engaging in a second or third marriage is to revise your will. Inheritance problems can leave spouses and children concerned about their financial future. This is why it is important to revise your existing will as soon as possible after you get remarried.
The final step to ensure a better financial future when entering into a stepfamily is to consult with a CPA. A CPA can give you more information about the best options to use trusts or life insurance to ensure that all beneficiary needs are met. This is a good opportunity to schedule a consultation with your Canton estate planning attorney as well to determine the best steps designed with your unique needs in mind.