Why blended families can’t afford to ignore intergenerational planning

Families today are wonderfully diverse. But with that diversity comes complexity. The idea of a “traditional” estate plan doesn’t always hold up when you’re trying to balance the needs of a new spouse, stepchildren, and possibly even grandchildren.

You might worry: Will one of the kids feel left out? Will my partner be secure if something happens to me? How do I make sure what I’ve built is passed on the way I intend? These are deeply personal questions, and ones that deserve equally personal answers.

– Finding the right balance
Every parent wants their child to feel seen and valued. But what’s fair isn’t always what’s equal. Perhaps one child needs more help with education or housing. Maybe another has already received financial support. What matters is being thoughtful about your decisions and having honest conversations with your family

– Avoiding tensions before they start
It can be heartbreaking when family members clash over inheritance, especially if a surviving spouse and adult children have different understandings or expectations. A solid, well-communicated plan is one of the best ways to avoid misunderstandings and protect relationships.

– Respecting what both partners bring
In second, third, fourth (etc.!) marriages, each partner comes with their own past, their own wealth, family, and wishes for the future. Estate planning should reflect both voices equally, so everyone feels respected and included.

– Talking about the tough stuff
Money, legacy, loss – they’re not easy to talk about. But these conversations can actually bring families closer. They show trust, transparency, and love.

– Bring in a neutral voice
Sometimes, bringing in a financial adviser can make these conversations easier. An IFA is there to listen without bias – they get to know your true values, and become your trusted confidant. They are well placed to keep the conversation on track, ensure everyone’s voice is heard, and help keep emotions from boiling over.

– Set the stage for understanding
When people understand why a decision was made, even if they don’t agree, they’re more likely to accept it. Sharing your thoughts helps limit surprises, and resentment, down the line.

– Wills, Trusts, and Powers of Attorney
These tools are essential, especially for blended families. A will can outline your wishes, but trusts can offer more control, especially when it comes to ensuring children from all relationships are treated fairly.It’s also important to know that getting remarried automatically invalidates any previous wills, unless they were made in contemplation of that marriage. There are proposals to change this law, due to growing concerns around vulnerable older individuals being exploited through marriage, but this would require new legislation.And whether you’re married, remarried, or cohabiting, putting a Power of Attorney in place ensures someone you trust can act on your behalf if needed, giving you and your family added peace of mind

If you’ve chosen not to marry or enter into a civil partnership, your partner won’t automatically inherit your estate, no matter how long you’ve been together. Unless you explicitly provide for them in your will, they could be left financially vulnerable. A solicitor can help you make sure your wishes are clear and legally recognised.

– The right trust for the right situation
There are several types of trusts designed to address the complexities of blended families. A Qualified Terminable Interest Property (QTIP) trust, for example, can provide an income for your partner until their death, while preserving assets for your children. Trusts like this give you options, flexibility, and peace of mind.

– Prenups and postnups aren’t just for divorce
Used wisely, these agreements can help clarify expectations around inheritance and protect everyone’s interests, making them a useful part of estate planning.

Inheritance Tax planning
Tax rules can be complicated, especially if stepchildren aren’t legally recognised as direct heirs. Planning early with an IFA can help make sure your legacy goes to your loved ones, not the taxman.

Think ahead, plan wisely
With careful planning, you can take advantage of tax exemptions and gift allowances. It might mean gradually transferring assets or using trusts to reduce potential tax burdens.

Gifting while you’re alive
Sometimes, gifting during your lifetime is the most rewarding option. It allows you to support your family now, see the impact of your generosity, and potentially reduce inheritance tax.

You don’t have to do it alone
This kind of planning is personal, emotional, and complex. Having a trusted adviser on your side of the table helps you navigate the decisions, see what’s ahead, and feel confident in the choices you’re making.

Help with family conversations
A financial planner can facilitate discussions in a way that’s calm and constructive. They know how to navigate tricky topics and keep everyone focused on the bigger picture.

A plan that feels right
When all the pieces come together – your values, your relationships, your legacy – you can move forward with peace of mind. That’s what good planning delivers.

At Amber River, we understand that no two families are the same. We’re here to help you create a plan that’s as unique and thoughtful as the people you love.