Blended Family Financial Planning
Financial and Future Planning Tips for Blended Families
If you’re currently thinking about blended family financial planning, we have a few tips you should consider. Unlike the typical financial planning procedure, planning for your blended family’s financial future entails unique challenges that you have to hurdle for it to become a success.
As you’re essentially two distinct families united into a blended household, you have to find common grounds for your different beliefs, values, parenting styles, and finances. It can be a pretty overwhelming task, to be honest, and it’s easy to find yourself gasping for air and clueless about your next move.
It’s not a secret that many blended families often clash when it comes to money matters. Therefore, there shouldn’t be any attempt at sugarcoating just how complicated and difficult blended family financial planning is.
The good news is that a great estate planning attorney can give sound pieces of advice and assist you in your financial planning needs based on your peculiar situation.
Here are 8 essential tips from an estate lawyer that you must remember when planning for your blended family’s finances and future.
Tip #1: Be Open About Your Assets, Debts, and Financial Accountabilities
Nobody likes unpleasant surprises. In blended families, there have been countless anecdotes about one or both partners being secretive about their respective debts and financial accountabilities until such time that the creditors come knocking on their doors.
As such, be sure to tell each other about every financial accountability that you have at the beginning of your life as a blended family. The sooner the two of you fully disclose such things, the better it’ll be, as you’ll be properly guided on how you should navigate your finances.
It’s also ideal if you are candid about your assets when doing your financial planning so both of you know what resources you have at your disposal.
Tip #2: Consider Having Written Contracts and Wills/SPAs
While many couples frown upon the mere idea, a lot of financial planning experts actually recommended that couples entering into a blended family setting consider having a prenuptial agreement.
This is to avoid misunderstandings later on since the division of properties and financial rights in the event of a divorce is properly and clearly spelled out.
It’s also advisable to have living trust and medical or durable powers of attorney prepared to cover all possibilities.
Tip #3: Talk to a Financial Planning Expert or Estate Lawyer
Financial and future planning can be quite upsetting, especially when you’re already faced with legalese. Why go through such a complex maze when you can simply tap the help of an expert to breeze through the entire process?
A lawyer specializing in estate planning can help you with the legal aspects of your preparations while a financial planning expert can offer practical pieces of advice on how your blended family should handle the matter.
Tip #4: Talk Financial and Life Matters Out as a Family
When you’re already living under one roof as a blended family, it’s critical that every member knows his or her roles and responsibilities when it comes to finances and life matters.
Be sure to regularly hold family meetings to keep everyone updated with plans about the family’s future and finances, as well as iron out problems, if any. This will help keep things running smoothly in the family and make each family member involved in the entire planning process.
Tip #5: Mind Your Taxes
Taxes are yet another important factor to consider when planning for your finances and future as a blended family. As it is, there are certain benefits that you enjoy while still a single parent that you’ll eventually lose when you enter into a new relationship.
On the upside, you could expect to gain a few benefits such as putting together your medical expenses, donations, etc. If you can, work with just one accountant for easier preparations of returns and other tax-related documents.
Tip #6: Understand Each Other’s Parenting Style and Financial Personality
Couples should jointly analyze one another’s financial personality and parenting style to find potential points of misunderstanding and determine ways to resolve them. Doing this simple exercise should also go a long way in finding common ground so both parents clearly understand how to handle the kids and deal with financial matters.
Tip #7: Create Unified House Rules and Be Consistent in Their Implementation
Both parents should brainstorm on what rules should be observed inside the home, taking into consideration their kids’ different personalities and needs.
If you happen to have a liberal family setup, you could also involve your kids with the process so they’ll feel respected. This approach will also give the kids a sense of accountability, which can help them appreciate the house rules and follow the same without remorse.
Tip #8: Help Each Other Out Financially
It’s normal to have couples with one partner financially better-off than the other. Since you’re essentially a single entity now, it would be a great move to agree on balancing things out money-wise.
If one set of kids can attend a nice school while the other set cannot due to financial constraints, both parents should find ways to address the disparity so the kids won’t feel disadvantaged.
Get the Help of a Skilled Trust and Estate Lawyer Attorney
Taking care of your blended family financial planning requirements become much easier with the help of an experienced estate planning attorney. If you’re in the Inland Empire or the nearby area, I, Andrea Aston, am the person to help ease your troubles.
I have long years of experience helping couples belonging to blended families with their estate planning issues and unique considerations. I can also help prepare health care directives, powers of attorney, living trusts, and wills.
Through her deep knowledge and expertise, I break down complex legal concepts into explanations that clients can easily understand. The estate plan you receive is guaranteed to be responsive and tailored to your peculiar needs.
If you have a blended family and you and your partner have decided to push through with your financial and future plans, contact me to schedule a consultation free of charge.
For expert help on all your pressing estate planning concerns, call (760) 758-1565 today. Working with me ensures a stress-free estate planning process at a price that you can afford with ease.
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