The family landscape is changing with increases in blended families, matrimonial breakdown and cohabiting. This may mean shifting family dynamics and relationships, which will likely translate to more complex estate planning.A parent may not want to pass his or her property to a child for a number of reasons. There are circumstances where it may be reasonable to exclude a child from inheriting, but a lack of proper planning can lead to costly disputes and strains on family relationships.
The psychology of wealth is emerging as a distinct area of academic study and research. With aging baby boomers, and the trillion dollar wealth transfer that is now beginning to take place, we need to know more about wealth, how it impacts families, and how to successfully transition wealth.The reality is that most of those who have wealth are new to it. It has been estimated that of wealth holders, 75%-85% are self-made and only 10% -15% are inheritors.
One of the most important aspects of estate planning for families is ensuring that everyone who is considered to be part of the family is able to share in the family wealth after death. While each holder of family wealth has different views on how and when this should occur, no one ever wishes to accidentally eliminate an intended heir. Unfortunately, this can happen all too easily when standard provisions routinely included in wills and trusts are not fully considered in light of each person's unique family circumstances.Here is one example of how such an unintended disinheritance might arise. A person makes a will which provides for a cash amount for each grandchild. This person has a child who is a parent to his or her spouse's child from a previous marriage. This child never legally adopted his or her spouse's child, although this "step-grandchild" is considered part of the family.