Estate Planning For Blended Families

By Andrew R. Bosshard, Attorney

Blended families are increasingly common in Wisconsin. Second marriages, children from prior relationships, stepchildren, and later-in-life partnerships create loving and meaningful family structures. However, they can also create complex estate planning challenges.

Without a clear estate plan in place, Wisconsin law will determine how assets are distributed. That distribution may not reflect your wishes — and in some cases, it can unintentionally disinherit children from a prior relationship or leave a surviving spouse financially vulnerable.

Understanding how Wisconsin law works and how proper planning tools can protect both your spouse and your children is critical for blended families.

How Wisconsin Law Treats Spouses And Children Without A Plan

If someone dies without a will or trust in Wisconsin, state intestacy laws control how assets are distributed.

In general:

• If you are married and all of your children are also your spouse’s children, your spouse typically inherits everything.
• If you are married and have children from a prior relationship, your spouse receives one-half of certain assets, and your children receive the other half.
• If you have no spouse, assets typically pass directly to your children.

At first glance, this may seem straightforward. However, complications often arise when:

• Certain assets are jointly owned
• Retirement accounts list outdated beneficiaries
• Property was brought into the marriage by one spouse
• There are minor children involved

Without planning, a surviving spouse may not receive enough financial support, or children from a prior relationship may receive less than intended.

The Risk Of Unintentionally Disinheriting Children

One of the most common estate planning mistakes in blended families happens when a parent leaves everything outright to their current spouse, assuming the spouse will later distribute assets to the children.

Unfortunately, that is not legally guaranteed.

If assets pass entirely to a surviving spouse:

• The spouse can change their own estate plan.
• The spouse may remarry.
• The spouse’s own children may become beneficiaries.

Even in loving families, circumstances change. Without protective planning structures, children from a first marriage can unintentionally be disinherited.

Balancing Support For A Spouse And Protection For Children

Blended family estate planning requires thoughtful balancing. Many individuals want to:

• Ensure their spouse is financially secure.
• Protect assets for their children from a prior relationship.
• Minimize family conflict after death.

Fortunately, Wisconsin law allows for several planning tools that can accomplish both goals.

Using A Will Strategically

A properly drafted will can direct how your assets are distributed. However, a will alone may not be sufficient in blended family situations.

While a will can:

• Specify percentages for a spouse and children
• Name guardians for minor children
• Clarify personal property distribution

It does not control jointly owned property or accounts with beneficiary designations. Additionally, a will must go through probate, which is a public court process.

For more complex family structures, trusts often provide greater flexibility and protection.

The Role Of Trusts In Blended Families

Trusts are powerful estate planning tools that allow you to control how and when assets are distributed.

One common option for blended families is a marital trust structure, sometimes referred to as a QTIP trust.

With this approach:

• The surviving spouse receives income from the trust during their lifetime.
• The principal remains protected.
• After the spouse’s death, the remaining assets pass to the children.

This allows a spouse to maintain financial stability while preserving the inheritance for children from a prior relationship.

Other trust structures may allow distributions for health, education, maintenance, and support, while still protecting long-term interests.

Beneficiary Designations Matter

Many assets pass outside of a will, including:

• Retirement accounts
• Life insurance policies
• Payable-on-death bank accounts

If beneficiary designations are outdated, they may override your estate plan entirely.

In blended families, it is especially important to review:

• Whether a former spouse is still listed
• Whether children are named directly
• Whether a trust should be the beneficiary

Coordinating beneficiary designations with your overall estate plan helps prevent unintended results.

Special Considerations In Wisconsin

Wisconsin is a marital property state. This means that property acquired during marriage is generally considered jointly owned by both spouses.

This can affect:

• Business ownership
• Real estate
• Investment accounts

Understanding what marital property versus individual property iscan be essential when structuring an estate plan in a second marriage.

Additionally, Wisconsin law provides certain spousal rights that cannot easily be disinherited without proper agreements, such as marital property agreements or prenuptial agreements.

Preventing Family Conflict

Blended family estate disputes are unfortunately common. Clear communication and legally sound planning can reduce misunderstandings and litigation after death.

Well-drafted estate documents can:

• Clarify your intentions
• Define distribution timelines
• Appoint a neutral trustee if appropriate
• Reduce ambiguity that leads to conflict

Taking proactive steps now can spare your loved ones stress, confusion, and financial strain later.

When To Review Or Update Your Plan

Estate planning for blended families should not be a one-time event. You should review your plan if:

• You remarry
• You have additional children
• You acquire significant assets
• Your spouse’s financial situation changes
• A divorce occurs

Life changes often require updates to ensure your estate plan still reflects your goals.

Planning With Confidence

Blended families require thoughtful and customized estate planning. There is no one-size-fits-all solution. The key is creating a structure that provides security for your spouse while preserving your legacy for your children.

At Bosshard Parke, we work with families in La Crosse, Sparta, and throughout the Coulee Region to design estate plans that reflect both personal values and legal realities. If you are part of a blended family and want to ensure your wishes are carried out clearly and fairly, we are here to help guide you through the process.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For personalized guidance, please consult an attorney at Bosshard Parke.