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Estate planning

Whoknows3's picture

DH and I recently had a baby together so we need to create wills. We plan to have one more baby in the future. We each entered the marriage owning a house and currently live in my home although he has never paid anything towards my mortgage. I make significantly more than he does and saved to buy rental properties to use as income to pay for our children's future college and our retirement as this was always my life plan. He had no retirement plan when I met him and he pays minimal expenses for our baby because his job has been unstable. DH does the handy work on the rental properties and I do everything else so we will equally benefit from the income when we retire. DH wants our collective estate to be split so that his half is divided 25% going to SS and the other 25% going to our children and my half would go solely to our children. Given that SS is almost an adult and will be working full time upon finishing school and we have a baby and in future years another baby there are unique considerations in regards to them being cared for until independent if we both pass. I also don't think SS should be getting any portion on my house that I purchased before I even met DH. SS has been very disrespectful since I met him and has even stolen from me.  He is very unappreciative of anything I do for him and treats me like I don't even exist. DH's family even has a problem with SS's behavior issues but he is so afraid to parent him. SS has no money management skills and I feel that he would blow any inheritance that I worked very hard for. There are also assets gifted from my family that DH wants SS to get a portion of. How have others made decisions regarding wills in blended families when assets and income are disproportionate? Do you consider ages or your relationship with the various children? Any tips for coming to an agreement?

SteppedOut's picture

So, your husband cant pay for your shared child but he thinks you should pony up to top up HIS KID's inheritance? LMAO. That would be a big fat no from me.

IMHO,  you should be working on a post nuptual agreement, in addition to the estate planning.

la_dulce_vida's picture

Were the funds from your family gifted to you BOTH? If they were given to you, they are YOURS unless you co-mingle them in a joint account.

You do need a post nuptial. Have your husband sign off on your house NOT being part of marital assets. You can also get him to waive any rights to your pre-marital assets (and even some assets earned during marriage). I did this with my 2nd marriage and it made my divorce VERY simple. No dividing assets.

Since your SS is nearly an adult, your husband should be focused on providing for his minor children and their mother. He should NOT be leaving money to an adult child while he has a wife and minor children to provide for. His adult son should be providing for himself.

Once you're BOTH gone, I could see HIS assets being divided equally between his 3 children, but you have every right to leave YOUR assets to your kids only.

The best way to give money to someone like SS is for your husband to set up a trust. A trust can set an age and conditions for receiving the funds OR dole them out in the form of a monthly check so that he can only spend what he gets every month and has no claim to the principal.

Whoknows3's picture

Some were gifted to just me and some were gifted to both of us but with the intention for it to be passed on to my children. I feel likehe is more focused on caring for his almost adult son than our baby. Even after we each took out life insurance policies based on the amount we thought would be appropriate, he said he wants half of his to go to his older son as fun money because he would be sad to lose his dad. This was after the amount was already set to raise our child to adulthood. I think I'm mad because there is clear favoritism towards his other son.

Survivingstephell's picture

What assets did DH have when he married you? That's what SS gets.   No way she SS get anything you brought to the table. 

notarelative's picture

I think SS gets his share of DH's assets. He's not DH's only child. If there are two children SS gets half of his dad's assets.  If there are three, he gets one third. 
SS gets none of your assets (unless you want him to).

notarelative's picture

If I were you, I'd go to a lawyer by myself and discuss the laws of your state and what are the ways to protect yourself and your children. Wills are a definite. Postnup? Trust? Would you be better served by having an LLC for the rentals? Does having DH do work on the rentals give him a share (if you are not paying him)?

Laws vary by state. You need to know the exact law in your state, and how it affects you, before you make any agreements with DH.

SeeYouNever's picture

You need to talk to a lawyer about what is actually yours and his. He can allocate his how he wants, same with yours. It sounds like he is telling you what to do with yours and spending your money. Big no.

I would create a will/trust for your child for your assets. He can have part of your life insurance but your house should be for your child.

Honestly I would outlive him out of spite.

My husband as of now has me and SD15 splitting his life insurance 50/50. We have 2 kids together. He thinks this is fair. These men always want to throw more money at the first spawn, it's guilt.

shamds's picture

Anything prior is not considered marital assets but check with your local courts because some may deem if you been married say 20 yrs that everything includong those purchased or owned prior to you meeting one another and marrying would now form part of the estate.

if the latter applies, you need to pre empt this and ensure a will is done stipulating the divisions.

i have a 5.5 & 7 yr old with my husband, skids are sd27, ss25.5, sd17. There is a big age gap and since the 2 eldest skids have graduated uni and in full time employment, youngest will be going to college next yr, hubby has covered the financial cost of raising them and provided the essentials including funding them till high school and tertiary education (the youngest he will do to).

if hubby were to pass away tomorrow, as bulk of his estate is overseas in a muslim country whereales get double, it means his kids will want their share. There is no guarantee they wanna ensure our 2 kids are provided for. Exwife has not worked in 3 decades.

when i had this discussion about 4 yrs ago, hubby at one points said i had to deal with the exwife controlling skids (especially sd's) and she would make lies and falsify documents to benefit her and her kids, thats just what she does. 
 

i made it clear to my husband that he needed to protect us now. That there was a large disparity in our kids upbringing and what all have financially benefitted from as skids benefitted more from living longer. If for example hubby has an estate of 1 million with 5 kids (3 whom are adults) and a wife, then splitting estate according to islamic law doesn't even things out.

i told hubby if exwife got the luxury to never cover a dime in financially raising the kids especially since she abandoned them, and hubby was financially supporting the kids, then him telling me i'll have to figure out job wise how to financially provide for our kids is hypocritical. Now, don't get me wrong, i will be working etc but its the principle.

hubby doesn't trust his eldest 3 to act honorably and in good faith, so he withdrew a large chunk of savings and bought a home in my country of birth and put it in my name solely so skids cannot touch it when he dies. Hubby has a life insurance policy with work and that has me as sole beneficiary because hubby has made it clear when he retires, skids are on their own financially 

eldest sd was non stop pressuring hubby to transfer property to skids only (apparently he still owes their mum) when we were married and had 2 kids already. His divorce stipulated he provide a home for skids (rental or owned it didn't stipulate), hubby bought a home after divorce and sd's live in it rent free. However sd reckons she and her full siblings should own it. Hubby said no because there is still a mortgage and he wouldn't transfer things to his kids from ex and single us all out because he knows with the large age gap and disparity in their provisions financially its not fair so he's moved some large things around so if he dies, i'm not being kicked out of a home by skids and exwife. 

ESMOD's picture

You should hopefully be able to carve out your home that you brought to the marriage that could be left to your kid.. or kids if you have more than one.

For your DH.. it would make sense for him to leave his half of your joint assets equally to his biological children.. right now it would be 5050... but if you have another child.. it would be 1/3 to his kid.. while yours each would get 1/3 of your half.. and what you would leave would go equally to your bio children.

You probably need a good estate atty to set it all up.. advise on if/when trusts would be beneficial for you.. and advice on deeding your properties.. and beneficiary listing for insurance policies.

It sounds like he is in some ways trying to level the playing field and is using an "equity" model vs a fair model where he is trying to end up with some equal outcome regardless of input.. where you want it to be fair where your kids benefit more because of your unequal input.

Whoknows3's picture

He is trying to make things equal as opposed to fair. He tried arguing SS should get more because our child(ren) would ultimately receive an inheritance from my family. Of course there would be inheritance on his family's side as well but apparently that was not to be considered, only my side. He has a soft spot for SS because he feels he's often left out of things. He doesn't acknowledge that he is left out of things because of his behavior and how disrespectful he is though. DH's own family refuses to take SS to their vacation home because of his behavior and more recently my family has said the same but DH only has an issue with my family refusing to put up with SS's behavior. DH refuses to address the behavior issues and says "that's just how he is."

ESMOD's picture

Honestly.. that sucks that he wants to take into account possible inheritance from others.  My DH's parents are trying to equalize in their mind.. what his brother gets because I am likely to get a decent inheritance from my parents.

The thing is.. what if I die before my father does and my brother gets everything.. what if my dad's advisors run off with everything? what if he leaves it all to the humane society?  what if I divorce my DH?  There is no guarantee I will come into that money.. and no guarantee that my DH will end up with it either.. 

Now.. sure.. my dad is 93.. I'm 58.. and I don't think we are headed to divorce court.. but it COULD happen.. and it is wrong for him to lose out and get less than his brother because his parents are trying to be "fair".. (and the brother's wife could come into some money herself.. but is in end stage liver disease.. so she will likely die before she ends up inheriting anything).

Your family may have current plans to leave something.. but the reality is that there is no guarantee it WILL happen.  Nothing like setting up resentment between your children by treating them markedly differently.

Now.. I might allow if your kids are set up at birth with some huge multi million dollar trust fund.. that maybe the extra 100K that he wants to leave his kid from his share.. well.. whatever.. but I don't think you are talking a sure thing in the extreme!

shamds's picture

My husband inheritance from his parents is minimal, my dad's estate is quite large. Skids can't guilt hubby or my kids that we will have a larger inheritance because their mum hasn't worked in 3 decades, she is continually out for a sucker she and her family can freeload and benefit of.

i have a higher level and quality of education comapred to skids, but i was raised in a first world western country by educated parents. We are better financially because my parents saved, studied, worked hard, delayed having kids etc. 

there is no way my husband would feel compelled to gift or will skids more on the basis our 2 kids will be better off financially because of me and my parents estate

my brother in 2020 refused to deal with me regarding my late mother's estate, he stole money out of spite and refused to answer any communication from me which as an inheritor, by law he cannot refuse to answer to me, he must answer to me if he takes on the administrator role.

then his wife got involved and my brother sent a harassing and intimidating text which he also sent to my husbands work email which his personal assistant can read basically stating my husband is loaded and owns 3 homes and even bought a home for me.

firstly the 3 homes he bought before he met or married me. The home we lived in i was involved with interior design, finishes and furniture etc. 

the home hubby bought in australia was because we agreed to send our kids to school there as education level better and they would have better opportunities whilst hubby worked overseas on contract. My husband earns more because he has worked up the corporate ladder and stuck it out in his company for over 30yrs.
 

My brother on the other hand whinges about every boss and workplace and continually changing companies so doesn't have a strong resume. My husband is nearing retirment age which is 56 in his country but because his experience and skills/knowledge is not easily replaceable, his ceo extended his contract so he can work till age 58 when he will resign from public sector

hubby invested his bonus and pay into savings. My brother on the other hand is impulsive and along woth his wife spending money unnecessarily when they have a mortgage not even paid off and selling home to move to a new place with a stay at home housewife who refused to do housework, cooking etc. they bought prepped food which is expensive, back and forth holidays every 2-3 months.

it all adds up. My brother even claimed i was entitled to 0 cents from my dad or mothers estate because he is poor. Very soon (2025), we will be living off 1 income as hubby will be retired in his country and to migrate here visa takes quite some time so for 1/2-1 yr he won't be allowed to work. We have the buffer to cope with 1 income and when his partner visa is approved, he does intend to work. 
 

my brother and his wife on the other hand are younger, his wife is an electrical engineer yet claimed its so stressful she'd rather work customer service so instead of earning $100,000 plus, she's earning maybe $40,000-50,000 sp essentially intentionally under earning. 
 

they both can't use my husbands smart choices as an excuse to have more of my parents estate, its not legal and with my husband at end of his working career in public sector, courts won't mandate well he should work private and has same earning potential when he's uprooting his life to an overseas country etc. 

some peoples reasons for trying to equalise estate is just bonkers. Ss needs to understand nothing in life is equal or fair. If he gets a lesser estate, its because his mum and dad didn't work hard enough snd make the sacrifices others may have and the risks to make more money. Thats how my husband sees things snd he feels no guilt for it

simifan's picture

Does he not consider SS has a Mother & Father to get his inheritance from. Why should SS be entitiled to your money? 

Whoknows3's picture

SS's mother owns multiple properties and has assets and when I brought up that SS would already be getting an inheritance from his mother and father and our child would not be receiving anything outside of us he dismissed it saying that he doesn't know anything about the mother's situation so he's not considering that.... yet he does want to take into consideration inheritance from my family. He picks and chooses what he wants to take into consideration to make sure that SS is favored. The clear favoritism is really getting to me. 

Winterglow's picture

"that's just how he is."

What utter tripe. He's that way because your husband has never bothered parenting him. He's intolerable because your husband neglected his role as a parent.

Whoknows3's picture

You are 100% correct. He fears that SS won't want to come over and see him if he makes any attempt to be a parent. This also includes small things like asking him to clean up after himself. He refuses to be a parent at all and then I'm the evil one if I dare ask him to. Meanwhile SS is burning his bridges and can do whatever he wants and DH thinks everyone should just put up with it. Well actually he only expects that myself and my family put up with it and doesn't care that his own family has set a boundary refusing to put up with SS. He says "well I gave up on my family." 

Winterglow's picture

Then he shouldn't be surprised that yours has given up on him and his son...

ndc's picture

I would go to a lawyer separately from my husband to figure out what is yours, what he has rights to, etc. under your state's laws, and how to make that as clear cut as possible. The two of you are not on the same page on this and frankly, I agree with your position. Minor children need to be taken care of,  your property should go to YOUR children, and a SS who disrespected me would not be getting anything that was mine. 

SteppedOut's picture

...and honestly, this would be a hill to die on for me. 

Best to figure this all out now, before he could take too much in a divorce. 

Seriously - post nup while you are doing this.

Whoknows3's picture

That is good advice. I was reading online that my state is an equitable distribution state so that marital assets are distributed fairly but not necessarily 50 50 in the event of a divorce and premarital assets are separate from that. I'm not sure how the laws apply to estate planning though so a good lawyer would be the one to consult.

shamds's picture

So if you bought assets like a home prior to marriage, then you die, who are your inheritors as they inherit it.

So that situation would be your bio kids and your husband (equally if common law is followed), then when your husband passes, that property of yours forms part of his estate so his bio kids inherit meaning ss too.

You'd be relying on your husbands good will to recognise some of that wealth didn't originate from him and it would be upto him to pre empt things and gift or transfer those assets or sell it off and gift the money to your bio kid(s) which isn't always gonna happen.

so we have to pre empt and think worst case scenario. As much as the fantasy of hubby believing his kids from exwife wouldn't try to disinherit me and our kids from his estate and steal assets etc after his death,  he knows the facts. His eldest daughter is obsessed with hubby transferring a property he bought after divorce to her and her full siblings even though we had 2 kids together

also, eldest sd guilted and shamed her dad for marrying and having 2 kids with me 5.5 plus yrs after her parents divorce, bio mum having an affair and marrying affair guy. 
 

i told hubby whilst we have minor kids who were yet to start primary school and he had 2 adults and a late teen with ex wife, he should not be gifting assets without putting down assurances and guarantees that me and our kids were provided for in the event he were to die tomorrow

if exwife has had the luxury of not working and financially having to co provide for their 3 kids (it was solely hubby), it becomes hypocritical for hubby to say i'm on my own and not provided for financially with the same benefits as skids have experienced financially their whole loves they have benefitted more as they are much older. 
 

levelling the playing field means our kids need to be provided by hubbys estate so that their education and basic care and needs are taken care of right till finishing uni which is what skids get. To not follow through on that is a double standard and i made it clear to mu husband i would not stay married to him and that i would be better financially protected divorcing him because then legally he and his estate would be obligated to follow through on those basic necessities

lucky for me, hubby came to his senses and told his kids from exwife that their own mum abandoned them for affair hubby, even as minors and that i am the only positive female role model but they've chosen to sabotage any relationship and need to understand when daddy is gone, they're on their own because i will go my own way with our 2 kids. 
 

so they can be loners or choose to have an inclusive and mutually respectful relationship with us because we would be the closest fsmily to them and they're sabotaging it out of selfishness, stupidity and pettiness. Growing up in the world with no family and so lonely because of that is just stupid

only ss made changes but sd's i have had no contact since November 2018. We are not family and my kids don't recognise them as family. They know they have a brother who has same daddy as them but a different mummy who is mean and abandoned/disowned him as a kid

ndc's picture

Make sure to ask what it takes for premarital assets to become marital assets. For instance, if the mortgage on a home owned before marriage is paid from marital funds, does any portion of that house become a marital asset?  And ask if there's a way to prevent it (such as signed waiver or postnup, paying solely from your pre- existing assets,  paying from your salary that's kept separate  etc). Your husband should really have no issue with the two of you preserving your premarital assets as separate property.  Unless, of course, he married you for your assets.