While blended family arrangements work perfectly well in everyday life, they can create estate planning challenges that many couples never anticipate.
One of the risks is something known as sideways disinheritance - where children from a previous relationship unintentionally lose the inheritance their parent expected them to receive.
Fortunately, with the right planning, this risk can often be avoided. Understanding how it can happen is the first step towards putting the right protection in place.
How Sideways Disinheritance Happens
To understand the risk, it helps to consider a typical example.
The Current Situation
John and Sarah are married. It's a second marriage for both.
John has two children from a previous relationship, and Sarah has two children of her own.
They own a home together in Poole and have straightforward mirror Wills, each leaving everything to the other on first death.
The First Death
John passes away first.
Under the terms of his Will, Sarah inherits his share of the house and the rest of his estate outright.
At this point, John's children receive nothing immediately, which is exactly what John intended. His priority was ensuring Sarah remained financially secure.
Life Moves On
Sarah is now the sole owner of the family home and controls the entire estate.
Over the following years, circumstances change.
She may:
- Remarry or enter a new relationship
- Become closer to her own children than her stepchildren
- Rewrite her Will
- Move home or restructure her finances
- Pass away without a valid Will in place
None of these situations necessarily involve bad intentions.
Life changes, relationships evolve, and priorities shift.
The Unintended Consequence
If Sarah later leaves everything to her own children, remarries and updates her estate planning, or dies intestate (without a valid Will), John's children may receive little or nothing from the assets he originally intended them to benefit from.
His wealth has effectively moved sideways into a different family line.
This is known as sideways disinheritance.
Importantly, it rarely occurs because somebody deliberately set out to exclude family members. More often, it is simply the legal consequence of leaving assets outright to a surviving partner without any additional safeguards.
It Doesn't Require Someone to Change Their Will
Many people assume sideways disinheritance only occurs if the surviving spouse changes their Will.
In reality, that is only one possible scenario.
Sometimes a surviving spouse simply never gets around to updating their estate planning after major life events such as remarriage, relocation, or changes in family circumstances.
In other cases, they may pass away without a valid Will in place altogether.
When this happens, inheritance laws determine who receives the estate, which may produce an outcome that neither partner originally intended.
This is one reason many blended families prefer to put protections in place at the time their Wills are drafted, rather than relying on future circumstances remaining unchanged.
The Challenge Facing Blended Families
For many blended families, there can be tension between two equally important goals:
- Ensuring a surviving spouse or partner remains secure and financially protected.
- Preserving an inheritance for children from a previous relationship.
Most parents do not want to choose between their partner's security and their children's future inheritance.
The challenge is finding an estate planning arrangement that balances both objectives fairly.
One Possible Solution: A Property Protection Trust
One solution that is often appropriate for blended families is a Property Protection Trust. However, every family's circumstances are different, and there is no one-size-fits-all approach.
Rather than leaving a share of the family home outright to the surviving spouse, that share is placed into trust following the first death.
Security for the Surviving Partner
The trust can provide the surviving spouse or partner with a right to continue living in the property for the rest of their life.
Depending on the terms of the trust, they may also have flexibility to move home or downsize in the future.
This helps ensure they remain secure and protected.
Certainty for Future Beneficiaries
At the same time, the deceased's share of the property remains allocated for their chosen beneficiaries.
Because that share is held within the trust structure rather than passing outright into the survivor's estate, it cannot normally be redirected through a future Will in the same way as personally owned assets.
When the trust eventually comes to an end, the deceased's share passes according to the terms they originally set out.
For many blended families, this provides reassurance that both generations have been considered.
Is a Property Protection Trust Right for Every Family?
Not necessarily.
Every family has different priorities, assets and relationships.
For some couples, a straightforward mirror Will may still be entirely appropriate.
For others, particularly where children from previous relationships are involved, a trust-based arrangement may provide greater certainty and control.
The right solution depends on your circumstances and long-term objectives.
Frequently Asked Questions
Can my spouse still live in the property?
Yes. Property Protection Trusts are typically designed to allow the surviving spouse or partner to remain living in the property for the rest of their life.
Can my partner sell the house?
In many cases, trust provisions can allow a move to a new property or downsizing, while preserving the intended protection for beneficiaries.
Does a Property Protection Trust only apply to blended families?
No. Many married couples use Property Protection Trusts as part of their estate planning. However, they are particularly popular where children from previous relationships are involved.
Can a standard mirror Will protect my children's inheritance?
A mirror Will may be entirely suitable in some situations. However, where blended families are involved, many people choose to explore additional planning options to provide greater certainty over how assets will ultimately be distributed.
Concerned About Protecting Your Family's Inheritance?
If you have children from a previous relationship, or simply want greater certainty over where your assets will ulimately go, we're happy to talk through the options with you.
Clear and practical estate planning, tailored to your family's circumstances.