Blended families require special considerations during the estate planning process. While a traditional family is more straightforward, blended families need to account for different approaches to handling children from different marriages, former spouses, and other family members.
Without careful planning, you may unintentionally disinherit your children or allocate assets incorrectly, creating family conflicts that can lead to litigious probate issues. This guide explains how Colorado law affects blended families and outlines the steps you need to take to protect everyone you love.
If you have a blended family and are interested in learning more about how your protect your loved ones, we invite you to call our office at 970-893-8857 to schedule a consultation with an experienced Fort Collins blended family estate planning attorney.
Why Blended Families Need Special Estate Planning
Over 16% of children in the U.S. live in blended families. These modern family structures create unique legal challenges that traditional estate planning doesn’t address. The truth is, without making careful changes to your estate, you could unintentionally disinherit your own children through the normal course of remarriage.
How Colorado Intestacy Laws Affect Blended Families
There are several laws that impact both regular and blended families, which is why it’s helpful to work with an experienced estate planning attorney. For example, if you die without a will in Colorado, state law determines who inherits your property under C.R.S. § 15-11-102.
While this could cause issues for someone with a traditional family structure, it can create even more headaches if you have a blended family.
Here’s what the statute says about who inherits your property in the event you pass without a will:
If you have children from a previous relationship:
- Your spouse gets the first $150,000 plus half the remaining balance
- Your children get the other half
This means that you must carefully consider what you want to pass down to your children and your stepchildren, as well. Your stepchildren, unless they have been legally adopted, have no inheritance rights under Colorado law. If you want stepchildren to inherit from your estate, you must explicitly include them in your estate plan.
The Spousal Elective Share
Even with a will, Colorado law (C.R.S. § 15-11-202) gives your surviving spouse the right to claim 50% of the marital property portion of your estate. This can conflict with your desire to leave assets to children from a previous marriage.
While it is nice to think that your current spouse has your children from your previous marriage’s best interests in mind, an estate planning attorney will likely tell you not to assume that.
Top 4 Estate Planning Mistakes in Blended Families
Here are a few circumstances that can arise if you do not carefully plan your estate with your blended family in mind.
1. Joint Ownership Problems
When you add your new spouse to your bank accounts or home title as a joint owner, those assets automatically pass to them when you die, bypassing your will completely. Your children from a previous marriage could get nothing.
2. Forgotten Beneficiary Designations
Life insurance, 401(k)s, and IRAs pass according to beneficiary designations, not your will. Forgetting to update these after remarriage is a common and costly mistake.
3. Relying on Promises
“I’ll leave everything to you, and you’ll take care of my kids” is not a good way to handle your estate planning. Promises like that aren’t legally enforceable. So, even if your spouse agrees to this when you say it, they can change their will after you’re gone, leaving your children with nothing.
4. Using Simple Wills
Traditional wills in which spouses leave everything to each other may work for first marriages. In blended families, they can create disaster scenarios. As we mentioned already, you do not want to assume that your spouse will carefully allocate your property to your children from your prior marriage. This does not mean that they do not care about your children, but your spouse may unintentionally have their interests and the interests of their own children at the forefront of their mind when distributing the estate.
Best Estate Planning Tools for Blended Families
QTIP Trusts: The Gold Standard
A Qualified Terminable Interest Property (QTIP) trust is often the ideal solution for blended families. This is a type of trust that allows you to give your spouse income and designated distributions from the principal for things like health insurance.
Your spouse does not have the ability to directly access the money or withdraw it otherwise. This allows your spouse to be taken care of throughout their lifetime, and once they pass, your children will receive the remainder of the trust assets. This allows you to have control over how your money is distributed, while still caring for your spouse and children.
Revocable Living Trusts
Revocable trusts offer advantages for blended families, because they allow you to create a trust that takes care of your family with the freedom to make adjustments to it throughout your lifetime. These trusts can protect assets from creditors and a former spouse, which allows individuals to ensure that children are taken care of after they pass. Another benefit is that the flexibility allows you to adjust the terms of the trust, so you can make sure that your beneficiaries are taken care of to avoid probate.
Life Insurance Strategies
Life insurance provides another solution to estate planning for blended families. By putting your money into life insurance, you can make sure that your children receive equal distributions from your life insurance. This allows your family to bypass the probate process entirely.
Prenuptial and Postnuptial Agreements
While this is not necessarily directly tied to estate planning, prenuptial and postnuptial agreements can help protect your assets before and during your marriage. You can control what property is considered marital and what you would like to keep separate which allows you to put money and property aside for your children that your spouse cannot claim. Colorado recognizes these agreements under C.R.S. § 15-11-201.
Providing for Stepchildren: Your Options
Since stepchildren have no automatic inheritance rights in Colorado, you may want to consider your other options. A few ways that you can ensure that your stepchildren are cared for are:
- Legal Adoption: Under Colorado Title 14 (Domestic Matters), adult adoption gives stepchildren the same rights as biological children.
- Specific Bequests: Leave particular assets or amounts to stepchildren in your will or trust.
- Life Insurance: Name stepchildren as beneficiaries to provide for them directly.
- Lifetime Gifts: Give property or money during your lifetime.
Fort Collins and Colorado-Specific Considerations
Estate planning laws vary from state to state. So, it’s important to understand what the Colorado estate planning laws are. Understanding probate procedures in your state, property allowance exemptions, and property ownership rules is important.
Probate Procedures
Colorado probate (Title 15, Article 12, C.R.S.) can be:
- Informal: Simpler, less expensive
- Formal: Required when disputes exist
- Small Estate Affidavit: For smaller estates
Exempt Property Allowance
Under C.R.S. § 15-11-401, surviving spouses receive $30,000 in exempt property before other distributions. This impacts how much children from previous marriages receive.
Property Ownership Rules
Colorado recognizes:
- Joint Tenancy: Automatically passes to the surviving owner
- Tenancy in Common: Each owner can leave their share to anyone
- Transfer-on-Death Deeds: Useful estate planning tools for real estate
Working with an estate planning attorney familiar with Fort Collins probate courts ensures your plan navigates local procedures smoothly.
What Should I Do Now To Protect My Blended Family?
Step 1: Inventory Your Assets
List everything you own and note how it’s titled and who the beneficiaries are.
Step 2: Define Your Goals
- How do you want to provide for your spouse?
- What should each child (biological and step) receive?
- What happens if your spouse remarries?
Step 3: Have Honest Conversations
Discuss plans with your spouse, children (when appropriate), and financial advisors.
Step 4: Work with an Experienced Estate Planning Attorney
Blended family estate planning requires expertise in Colorado law. Look for an estate planning attorney who:
- Focuses on estate planning
- Has extensive blended family experience
- Understands Colorado probate and trust law
- Explains options clearly
Step 5: Review Regularly
Update your plan:
- Every 3-5 years
- After major life changes
- When laws change
- When relationships change
Common Questions About Colorado Estate Planning for Blended Families
Do I need to treat all children equally?
Fair doesn’t always mean equal. Consider each child’s circumstances, needs, and your relationship with them.
What if I can’t afford separate trusts for each family?
One comprehensive plan can address everyone’s needs. Contact an estate planning attorney for specific prices, but creating an estate plan designed for your blended family is going to simplify the process and likely the cost.
Should I tell my children about my estate plan?
Generally, yes. Surprises after death cause conflicts. Communication prevents misunderstandings.
What if my spouse and I disagree about distributions?
This is where prenuptial or postnuptial agreements help. Each spouse can maintain separate property and estate plans for their own children while sharing marital assets.
Why This Matters Now
Blended families are often more complex than traditional family structures. With proper planning, you can:
- Provide for your spouse without disinheriting your children
- Treat all children according to your wishes
- Minimize family conflict and legal disputes
- Avoid the pitfalls that destroy other blended family plans
- Create certainty for everyone you love
Facing these issues head-on and creating a carefully crafted estate plan can help you and your blended family avoid future conflicts.
Contact Anzen Legal Group
At Anzen Legal Group in Fort Collins, we specialize in estate planning for blended families. We understand Colorado law and the unique challenges your family faces.
Your family’s peace of mind is too important to leave to chance. Let us help you create an estate plan that honors all your relationships and ensures your wishes are followed.
Call our office today at 970-893-8857 to schedule a consultation with an experienced Fort Collins estate planning attorney for blended families.
Don’t wait until it’s too late. The best time to plan was yesterday. The second-best time is now.
