According to the Pew Research Center, more than 40% of American adults have at least one “step-relative”— that is, either a step-child, a step-sibling, or a step-parent. I estimate a similar percentage of my own clients belong to this demographic. Each of these blended families has a unique plan for how assets are to pass at death. Some clients want to treat each of their children, together with their step-children, on equal footing. Other clients say, “We have agreed to pass all of our assets to our own children at death.” That is, these client intend to omit one’s spouse altogether. Many of these clients are surprised to learn that, in the absence of a valid antenuptial or postnuptial agreement, Minnesota law is not well-suited for this plan. By reason of Minnesota’s “spousal elective share rules,” the surviving spouse is entitled to certain assets and can exercise certain rights to receive a deceased spouse’s assets even if a Will or Trust says otherwise.
Here are a few strategies that we have employed to assist our blended families to provide for their children:
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