Families come in all shapes and sizes. It’s important for your estate planning to reflect it! If you’ve adopted children or have a blended family with stepchildren, make sure your estate is structured to distribute accordingly.

Adopted children

Most estate planning situations don’t distinguish between biological and adopted children. Intestate succession laws, which regulate who inherits property in absence of a will, put all children on equal ground. 

Moreover, both adopted and biological children are regarded the same for wills or trusts that address gifts or distributions to classes of individuals, such as “children,” “grandchildren” or “lineal descendants.” This can apply even after the will or trust is executed.

Unadopted stepchildren

However, from an estate planning perspective, stepchildren are viewed differently. Unadopted stepchildren don’t have the same inheritance rights to their stepparent’s estate unless they are legally adopted by the new parent. That’s why it’s important to make sure your estate plan directly addresses if and how you want your assets to be distributed to them.

Adoption can be an option, but it’s generally not advised to adopt a stepchild solely for estate planning purposes. If you adopt a stepchild, you then carry all parental rights and responsibilities for the rest of your life. Adoption can also impact whether your stepchild can inherit from their biological family. Why? Most state laws sever the other biological parent-child relationship through the adoption process.

This doesn’t just apply to the parent-child relationship. Your stepchild wouldn’t be able to inherit through that biological parent’s family. If John’s stepmother, Sue, for example, adopts him, the adoption decree would terminate John’s intestate succession rights for his biological mother, Ellen, and her entire family.  

There are nuances to this, though. Some states provide exceptions for “family realignments.” Most states provide an exception for certain “family realignments.” If Tom is deceased, Sue could adopt him without interrupting his inheritance rights stemming from his biological mother.  If, for example, Ellen’s brother Jim dies intestate, Tom is part of the class of heirs. A word to the wise, though: not all states recognize family realignment, so make sure to see what laws apply to your family.  

Under some circumstances, you may want to exclude stepchildren from your estate. In these situations, you might not need to do anything at all. But because some states allow stepchildren to inherit as part of intestate succession, make sure you check your state laws. (Again.)  

Write it all down

As with most estate planning concerns, the best strategy is a written strategy. You and your spouse or partner should clearly articulate how you wish your estate to be divided through wills, trusts, and other estate planning measures. If you just rely on intestate succession laws, your estate might not be distributed as you intend. 

If you are ready to start planning your estate or if you just want to make sure you’ve addressed all the relevant issues, we’re here to help. Contact Smolin Lupin today to learn more about our estate planning services.