More and more families in the Bow Valley include stepchildren, second spouses, or complex relationship dynamics. For these “blended families,” estate planning is not straightforward. Canmore-based lawyer Austin Ward sat down with Lisa Statt Foy, a lawyer and a Registered Trust and Estate Practitioner in Field Law’s Wills + Estates group, to talk about how local families can navigate these unique challenges and protect everyone involved.
Why is estate planning especially important for blended families?
In a blended family, common misconceptions can create real problems. For example, many Albertans believe that everything will pass to their current spouse on their death, and then eventually to their respective children. However, the law does not necessarily work that way unless wishes are clearly set out in a legally-valid Will. If you die without a legally-valid Will, Alberta law directs who receives the estate - and in blended families, that often leads to unintended consequences.
Can you give an example?
Sure. Let’s say you die without a legally-valid Will, leaving behind a spouse and children from a previous relationship. Your spouse is entitled to only a preferential share of your estate, and your children (including minor children and estranged children) receive the rest. Often this does not align with what the Deceased wanted or expected – especially as such result typically causes financial strain, and tension among family members. A carefully-considered estate plan and a legally-valid Will helps prevent this unfortunate result.
What tools help make things fair for both a current spouse and children from a previous relationship?
There is no ‘one-size-fits-all’ answer. Some options include trusts and life insurance. Trusts, for example, can allow a surviving spouse to benefit from your estate during your spouse’s lifetime, while ensuring any remaining assets go to your children after your spouse’s death. It all depends on your family dynamic, the specific assets involved, and your wishes – but it always requires a legally-valid Will that takes into consideration all relevant factors.
Any tips for families starting the process in the New Year?
Do not wait until there’s a crisis! If you recently married/remarried, moved in with your partner, had a child, or experienced a major life change, it is time to revisit your estate plan - or make one if you haven’t yet. Talk to your family and get clear on your goals. Then sit down with an Alberta lawyer who understands the dynamics and nuances relevant to blended families.
What about vacation properties or jointly-owned real estate in the Bow Valley?
Such assets complicate things even further and can cause huge issues for your family. A lawyer that specializes in estate planning can help families work through the considerations, and make sure intentions and wishes are clear and enforceable.
For more information, contact Lisa Statt Foy at lstattfoy@fieldlaw.com or 403-232-1755, or reach out to Austin Ward at award@fieldlaw.com or 587-956-2754.
