Wills for Blended Families

Wills for Blended Families

Michael and Carla

Michael and Carla have been in previous relationships and each have adult children from those relationships. Michael is a construction worker and Carla is a medical receptionist. Together they own a house as joint tenants in which they reside and which is mortgaged, and death benefit insurance within each superannuation, but not much else in the way of property. They want to leave each other their interest in the house and their superannuation benefits to their children.

The Will

Michael and Carla met with our Senior Estate Planning Solicitor, Conrad Curry. Conrad explained that the house would pass automatically to the survivor of them if the tenancy remained as joint tenants. However, there were significant tax consequences for the children if the superannuation was paid to them.

Conrad recommended severing the joint tenancy and nominating the estate as the binding beneficiary under the superannuation policies. Each would give their respective interests in the property to each other charged with the payment of legacies to the children to the full amount of the superannuation benefit. This meant that if the survivor wished to hold the property outright, they would be required to pay an amount equal to the monies received from the superannuation to the deceased’s children and secured the children’s interest in the property as security.

Michael and Carla are both satisfied that if the worst were to happen to them, their families would be looked after and their assets would be distributed as they pleased.

We offer a range of plans to suit Wills for blended families and those in other circumstances. You can explore these options here.