Royal families in the medieval and early-modern periods often had complex dynamics, which frequently led to periods of political turbulence.
One particularly eventful episode in the British Isles surrounded the reign of James V of Scotland. Born on 10 April 1512, James was the son of Margaret Tudor, daughter of Henry VII of England, creating a direct blood link between the Scottish and English crowns.
At the time, Scotland maintained the “Auld Alliance” with France, a relationship strengthened through James V’s marriages – first to the daughter of King Francis I, and later to a French noblewoman.
When James V passed away, his daughter, Mary, Queen of Scots, inherited the throne. Having been raised in France and married to the future King Francis II, her close ties to both France and Scotland complicated matters with England.
As the great-granddaughter of Henry VII, Mary had a potential claim to the English throne. With Elizabeth I lacking a direct heir, she deemed Mary a threat, ultimately leading to her imprisonment and execution.
While this is an extreme example of how inheritance disputes can become challenging, it does highlight the importance of having a clear and well-thought-out estate plan.
This is especially the case with blended families, where one or both partners have children from previous relationships.
Blended families are more common than you might think, with 2021 census data from the Office for National Statistics revealing there were 781,000 stepfamilies in England and Wales at the time.
With this in mind, continue reading to discover some of the estate planning challenges you may face in a blended family and some ways to overcome them.
Blended families might run the risk of facing “sideways disinheritance”
One of the main concerns with estate planning for blended families is ensuring that your assets are distributed according to your intentions.
If you remarry in England, Wales, and Northern Ireland, your existing will is typically revoked.
This means that unless you create a new will, your estate could be distributed according to the rules of intestacy, which may result in your spouse and biological children automatically being entitled to your estate, even if you had previously intended to leave assets to stepchildren.
What’s more, if you’re in a long-term relationship but unmarried, your partner won’t typically inherit automatically unless you explicitly include them in a valid will.
This could lead to unintended consequences when you pass away, especially if your assets are passed directly to any biological children, potentially leaving your partner in financial difficulty.
Another challenge blended families might face is the risk of “sideways disinheritance”. This occurs when you intend for all of your children – including those from previous relationships – to inherit equal shares of your estate.
Yet, if you remarry and pass away before your new spouse, they may inherit the majority of your estate.
If they then remarried or updated their will, they could choose to leave everything to their own children from a second marriage, excluding yours completely.
Worse still, if your estate is distributed according to the rules of intestacy, your biological children from a previous relationship might have no legal recourse to reclaim their rightful inheritance.
There are ways you can address estate planning challenges for blended families
Fortunately, there are several steps you can take now to help ensure that your assets are passed on according to your wishes, protecting your blended family.
1. Keep your will updated
Perhaps one of the most effective ways to manage estate planning in a blended family is to regularly update your will.
It’s worth treating it as a “live” document that reflects any significant changes in your life, such as remarriage, welcoming a new child into the family, or divorce.
You might take the time to review your estate plan once or twice a year. By doing so, you can ensure that all intended beneficiaries are accounted for in your will, potentially reducing the risk of accidental disinheritance.
2. Discuss your wishes with loved ones
Even if you do keep your will current, it’s still vital to discuss any intentions for your estate with family, as doing so could help manage their expectations.
If, say, you decide to split your wealth unevenly but fail to discuss this, it could come as a surprise, potentially leading to an inheritance dispute in the future.
These conflicts are far more common than you might think. The Guardian reports that as many as 10,000 people in England and Wales dispute wills each year.
By sitting down with your loved ones and talking openly about your estate plan, you could ensure that everyone is aware of your intentions.
This could even allow your beneficiaries to ask questions, voice concerns, and understand the reasoning behind your choices, potentially reducing the chances of a dispute.
3. Consider using trusts
A trust is essentially a legal arrangement that allows you to hold assets outside of your estate, while naming a specific beneficiary who will inherit them. This can provide much greater control over how your estate is distributed after you pass away, especially in a blended family.
For instance, if you die before your spouse, and they then remarry, a trust could ensure that your children still receive their intended inheritance.
A common option is a “life interest trust”, which allows your surviving spouse to continue living in your family home after your death, while ensuring that the property ultimately passes to your children.
Just remember that trusts can be complex, so it might be prudent to seek professional advice first to ensure you structure them effectively.
4. Speak to a financial planner
Had James V been able to consult with a trusted expert to help navigate some of the complexities of royal succession, perhaps the turmoil surrounding Mary, Queen of Scots, and Elizabeth I could have been avoided.
While your own estate planning efforts likely don’t involve international diplomacy and hereditary rule, advice from a professional could still help prevent any unintended consequences.
A financial planner could work with you to create a strategy that aligns with your wishes, all while considering any potential long-term family dynamics.
We could also take part in any open and honest discussions you have with your loved ones, acting as a mediator while offering professional guidance.
To find out more, please contact us by email at info@investmentsense.co.uk or call 0115 933 8433.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning, trusts, or will writing.
