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Estate Planning for Blended Families

Writer's picture: Erin Watson, JDErin Watson, JD
Blended Family, Dad with son, mother with daughter in forest.

Blended families, where two people come together and bring children from previous relationships, are increasingly common. These families, also known as stepfamilies, introduce unique challenges when it comes to estate planning.


Without careful planning, misunderstandings and unintended exclusions can arise when one of the spouses in the blended family passes away. Inheritance disputes can arise when stepchildren and biological children feel they weren’t treated equally. Another cause for concern is the ability of a surviving spouse to revise their Will after the first spouse passes away. This can potentially result in the deceased’s children being disinherited, contrary to the deceased spouse’s wishes. Ontario’s inheritance laws under the Succession Law Reform Act can further complicate matters if there is no clear estate plan in place.


How to Approach Estate Planning for Blended Families


The cornerstone of any effective estate plan is open and honest communication. Start by having candid discussions with your spouse and children about your goals, concerns, and intentions. These conversations can help manage expectations, reduce misunderstandings, and foster family harmony. While these talks may be difficult, they are crucial in addressing potential conflicts before they arise.


Estate planning for blended families requires careful consideration to address the unique dynamics and potential challenges. From navigating relationships to ensuring your wishes are honoured, here are some essential steps to take to create a thorough estate plan.


  • Ensure your Will is Comprehensive: A generic Will is often insufficient for the complexities of a blended family. You will need to consider how to balance the interests of biological children, stepchildren, and any children from the joint relationship. You will need to ensure that both spouses are clear about their respective inheritance intentions and obligations.


    Under Ontario intestacy rules, stepchildren do not have automatic inheritance rights. If you wish to provide for stepchildren, make this intention explicit in your Will. Clearly outlining these provisions avoids confusion and ensures stepchildren are treated according to your wishes.


  • Leverage Trusts: Trusts are powerful tools for blended families. A trust is a legal arrangement where an individual transfers ownership of assets to a trustee who holds and manages the assets for a beneficiary. Trusts can help safeguard assets while promoting transparency and fairness within the family.


    For example, if one spouse brings significantly more assets into the marriage, additional measures may be necessary to protect these assets for their biological children. A spousal trust can allow you to provide income to your surviving spouse for their lifetime while ensuring the principal is preserved for your children.


    Testamentary trusts, which are created through your Will, can help control how and when beneficiaries receive their inheritance ensuring your intentions are followed.


    In blended families, one significant concern is the ability of a surviving spouse to change their Will after the first spouse’s death. For example, you might leave your entire estate to your spouse, trusting they will divide assets fairly among all children. However, circumstances such as new relationships or shifting priorities may lead to your children being disinherited. Trusts can ensure your wishes are upheld.


  • Consider a Domestic Contract: Under the Ontario Family Law Act, domestic contracts are legally enforceable agreements that can outline how property and assets will be divided upon separation, divorce, or death. For couples entering a second marriage, a well drafted domestic contract (e.g., a prenuptial or postnuptial agreement) can help avoid litigation by clearly outlining how assets should be managed and distributed, providing stability, and reducing potential family conflicts.


    For example, a domestic contract can specify that certain assets (e.g., a family cottage or inheritance) will be preserved for biological children from a previous relationship, rather than becoming part of the marital estate. Without such an agreement, a surviving spouse may have rights to claim those assets under the Family Law Act.


    In Ontario, a surviving married spouse can choose to receive an equalization payment under the Family Law Act rather than accepting what is provided in the Will. A domestic contract can waive the surviving spouse's right to this election, ensuring that the estate plan is followed as intended.


    The domestic contract can align with and reinforce provisions of the Will or any trusts, ensuring consistency across all estate planning documents.


  • Plan for Healthcare and Incapacity: Designating powers of attorney for personal care and property is essential for blended families. These documents specify who will make medical and financial decisions on your behalf if you become incapacitated. In blended families, these decisions can be particularly sensitive, so it’s crucial to choose trusted individuals who will act in your best interests.


Family with young daughter signing will with estate lawyer

By taking these steps, you can address some of the complexities of estate planning for blended families. A well-crafted estate plan not only minimizes potential conflicts but also helps maintain harmony within your family. By addressing potential challenges head-on and utilizing tools like trusts you can ensure your wishes are carried out and your loved ones are cared for.


Given the complexity of estate planning for blended families, professional advice is essential. At E is For Estates we can help you navigate the legal landscape, identify potential risks, and draft documents tailored to your family’s needs.


This article is intended for informational purposes only. For personalized advice tailored to your specific circumstance, please reach out to the E is for Estates team.


Erin Watson, JD, B.A.

Barrister & Solicitor

E is for Estates


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