1,300 blended families form daily

According to the US Bureau of Census, over 50% of US families are remarried or re-coupled and an estimated 1,300 new stepfamilies are being formed every day. There are roughly 30 million children, under the age of 13, living with one biological parent and that parent's current partner. Families with adult stepchildren experience the same challenges as those with younger stepchildren. Children of all ages commonly struggle with a new definition of what "family" means as well as their place in it.

Among the conflicts that arise over prioritizing use of money, parents regularly help their children with educational expenses. For example, co-signing a student loan or having a grandparent own the 529 plan for a grandchild. The point is that there are compromises to be made. An innocent mistake may end up costing tens of thousands of dollars which could have been useful for other future goals.

Approximately 68% of Americans do not have a will, according to TheConversation.com. Dying without a will can cause all sorts of problems for families. A surviving spouse may change their mind, update their will and disinherit the step-children. In one case study, a man wanted to provide for his new wife and leave any remainder to his children. His kids found themselves having to wait for their step-mom to die before they received any inheritance.

Sooner or later, something happens. There are more than 65 million people in the U.S. who provide care for a chronically ill, disabled or elderly person. It is estimated that an average of 20 hours per week is spent providing informal, unpaid, care. The profile of a typical caregiver is a 49-year old woman caring for her widowed or divorced 69-year old mother who does not live with her. She is married and employed and has children under age 18. Is it possible that the health of a family member may influence a decision to leave the workforce sooner than originally planned? Would an early retirement mean caregiving responsibilities? The financial impact could include COBRA for health insurance, fewer contributions into retirement savings accounts and a lower Social Security benefit. Find out how much you could expect from Social Security https://www.ssa.gov/myaccount/

Communicate with the people who you love. It is important that they understand your wishes and priorities. Discuss your preferences with the person who will make your healthcare decisions and be sure that they are comfortable with their role and that they can be available to carry out your wishes. Go over your important papers one more time to be sure everything is exactly how you want it. Are your beneficiary designations up to date? Your written plans and up front conversations will help keep people as calm as possible during a stressful time in the future.

This article is intended to raise awareness of estate planning and caregiving needs, particularly for complexities created within blended families. It is not intended as a substitute for legal, tax, nor financial advice.