5 estate planning steps for blended families
Avoid complications with these tips
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1. Update your documents
In some provinces, a marriage could invalidate a previous will, so it’s important to re-assess and update any estate-planning you may have done prior to remarrying. Also, make sure to update any beneficiaries you may have assigned, otherwise you could unintentionally leave your RRSP savings to an ex-spouse.2. Choose an executor
Who do you pick to carry out the terms of your will? Your spouse, children from your previous relationship, your current relationship or a combination of all three? Avoid the confusion and awkwardness by designating a third-party like a lawyer or accountant.Compare the Best Savings Accounts in Canada* >
3. Establish a trust
If you have specific parts of your estate you wish to pass on to children of a previous marriage, while still providing for your current spouse, a trust will ensure the correct division of assets.4. Consider getting life insurance
The money from a policy would be available after death, adding to your estate. You could, for example, assign children from a previous marriage as beneficiaries to these funds, leaving another part of your estate for your spouse.5. Sign a marriage contract
It’s awkward, but could be very helpful for a second marriage, where estate planning isn’t quite as straightforward as the first time around. For more details on estate planning for blended families, head here.What does the * mean?
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