Estate Planning for Blended Families in Alberta

Blended families are increasingly common. Whether through remarriage or long-term partnerships, many Albertans find themselves with spouses, stepchildren, and children from previous relationships all under one roof. While this brings new opportunities for connection and support, it also introduces added complexity to estate planning. Without careful consideration, blended family dynamics can lead to unintended consequences, conflict, and even litigation.

Why Blended Families Require Special Estate Planning

Traditional estate plans are typically designed with a nuclear family in mind: a spouse and mutual children. In blended families, the relationships between spouses, biological children, and stepchildren are not always straightforward. Questions about fairness, loyalty, and inheritance rights can arise and intensify after death.

Here are a few common concerns:

• Will my spouse continue to support my biological children if I die first?
• Will my children inherit equally if my spouse has their own children from a previous relationship?
• How do I prevent future disputes between my current spouse and children from a prior marriage?

These issues highlight why a one-size-fits-all estate plan is inadequate for blended families.

Alberta’s Estate Law Framework

In Alberta, estate distribution is governed by the Wills and Succession Act. If someone dies without a will (intestate), the Act sets out a default formula for how their estate is to be distributed. For blended families, this formula can produce outcomes that are very different from what the deceased may have intended.

For example, if a person dies without a will and leaves behind a spouse and children from a previous relationship, their spouse may be entitled to the entire estate if the net value is below a certain threshold. If the estate is larger, it may be divided between the spouse and children, but not always equally. In some cases, stepchildren are entirely excluded unless legally adopted.

To avoid surprises, blended families must create a clear, legally valid will and consider other planning tools to carry out their intentions effectively.

Spousal Rights and Family Maintenance Claims

Alberta law allows spouses, adult interdependent partners (“common law” partners), and certain dependents to make claims against an estate if they feel they have not been adequately provided for. This is governed under Part 5 of the Wills and Succession Act.

For example, if a will leaves everything to children from a prior relationship and provides little or nothing to a surviving spouse, that spouse may file a claim for support. Conversely, if the estate plan disproportionately favours a new spouse, other family members may feel compelled to challenge the will.

This risk of legal action underscores the importance of balance, fairness, and transparency in estate planning for blended families.

Common Estate Planning Strategies for Blended Families

To avoid future disputes and ensure that all parties are treated according to your wishes, blended families can make use of several estate planning tools and strategies:

1. Mutual or Mirror Wills

These are wills made by two partners or spouses who agree to leave their estates to each other and then to their respective children. While this can be a straightforward approach, it comes with a caveat: after the first spouse dies, the surviving spouse is free to change their will, which could disinherit stepchildren.

To avoid this, spouses may wish to consider more binding strategies.

2. Spousal Trusts

A spousal trust allows one spouse to leave assets in trust for the other’s benefit during their lifetime, while ensuring that the remainder eventually passes to the deceased’s children. This arrangement is particularly useful when the goal is to provide for a surviving spouse while preserving assets for children from a previous relationship.

For example, a home could be placed in a spousal trust. The surviving spouse can live there for life, but upon their death, the home passes to the children of the first spouse.

3. Separate Property and Asset Designation

Some families choose to keep certain assets separate during marriage and designate specific beneficiaries for each. For instance, registered accounts (RRSPs, TFSAs, life insurance, etc.) can have named beneficiaries, ensuring direct transfer outside the will. This allows an individual to provide for their children or spouse independently of their estate.

However, it’s critical to coordinate these designations with the will and other documents to avoid inconsistencies or unintended tax consequences.

4. Cohabitation or Marriage Agreements

A marriage contract or cohabitation agreement can clarify property and estate intentions from the outset of a relationship. These agreements can outline how property is to be divided on death or separation, potentially reducing uncertainty and conflict later on.

They can also set expectations about inheritances for children from previous relationships and help ensure each partner retains control over their own assets.

Communicating Your Wishes and Reducing Conflict

Legal documents are essential, but open communication is equally important. Family members are more likely to respect your wishes and less likely to contest your will if they understand the reasoning behind your decisions. Testators should consider discussing their estate plan with family members and/or writing a letter to accompany their will, outlining their motivations and intentions.

Additionally, estate plans should be updated regularly, especially after significant life changes such as marriage, divorce, or the birth of a child. Professional guidance from an experienced estate lawyer and possibly a financial advisor can ensure your plan is both legally sound and aligned with your family’s unique structure and goals.

DBB Law: Providing Comprehensive Estate Planning Services to Blended Families in Calgary

Estate planning for blended families is rarely straightforward. Even small oversights can have major financial and emotional consequences. The knowledgeable wills, estates, and trusts lawyers at DBB Law create tailored estate plans, including comprehensive wills and structured family trusts, that minimize the risk of costly estate litigation down the road. We also update existing estate plans for clients entering into a new phase of their lives after a divorce or new marriage, when blending households, or the birth of a child.

Conveniently located in downtown Calgary, DBB Law proudly serves clients across Alberta. To book a consultation, please call 403-265-7777 or contact us online.