Firstly, it is worth reminding ourselves of what is meant by the term ‘intestacy’. In simple terms, intestacy is dying without a valid Will.

When someone dies without a valid Will, the rules of Intestacy apply. The deceased’s estate is distributed in accordance with these rules which are set out in the Administration of Estates Act 1925.

The Act refers to ‘issue’. Issue means direct descendants which means biological, adopted, and illegitimate children of the deceased. There is no reference to stepchildren and therefore, under Intestacy rules stepchildren do not inherit.

With the increase in second marriages, the presence of stepchildren is not uncommon, and a blended family can mean there is a need for careful planning.

Can I include my Stepchildren in my Will?

For stepchildren to be included as beneficiaries of a Will they need to be mentioned specifically. Failure to do so will mean that they will not inherit.

Whilst a couple may write their Wills together with each largely reflecting the other (‘mirror Wills’), there is no guarantee that a surviving spouse will leave their Will unchanged following their spouse’s death. Where stepchildren were once included, they could be omitted from a new Will.

Can my Stepchildren challenge my Will?

Importantly, if stepchildren are omitted from a Will, they would have the right to make a claim against their stepparents’ estate particularly where the estate includes assets that were brought to the relationship by their parent. This right to make a claim extends to situations where the stepparent dies intestate.

Wills can be written with a binding agreement that they cannot be altered post-death, but this approach can lead to other issues and these mutual agreements are rarely seen.

How can I protect my Will?

A Lifetime Interest Trust can be used to ensure that assets pass to the children of one spouse on death. These can be structured such that the asset belongs to the children, but the surviving stepparent can benefit from the asset i.e., they could continue to live in a property that has been left to their stepchildren. Even if the stepparent alters their Will, they cannot alter the fact that their stepchildren own the asset.

There might be genuine reasons why a stepparent would want to exclude their stepchildren from their Will. A letter attaching to the Will explaining these reasons would be helpful and could be used to defend against a claim on their estate being made.

Conclusion

In summary, where stepchildren are involved, it is important that the married couple discuss their wishes in relation to their assets, those brought to the relationship and those acquired as a couple. It would be sensible for them to obtain legal advice when writing their Wills to help avoid issues post-death.

Contact us on 0330 320 9280, email info@cravenstreetwealth.com or complete our online enquiry form for practical advice tailored to your own circumstances and needs.

 

The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice. References to legislation and tax is based on our understanding of United Kingdom law and HM Revenue & Customs practice at the date of publication. These may be subject to change in the future. Tax rates and reliefs may be altered. The value of tax reliefs to the investor depends on their financial circumstances. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of these comments. You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.

Craven Street Financial Planning Limited is authorised and regulated by the Financial Conduct Authority (FCA). The FC