Blended family are an increasingly common reality, in Quebec as elsewhere. However, the estate in such a situation can prove to be complex and a source of potential conflict. Well thought-out, well-structured estate planning is of the utmost importance in ensuring a fair distribution of assets and maintaining harmony within the family.

In this article, we explore the main aspects of estate planning for blended families, highlighting the legal particularities in Quebec. Find out how to ensure a fair and worry-free estate for your loved ones through estate planning and funeral pre-arrangements.

 

Understanding the challenges of blended families

Stepfamilies are families in which there are children from previous relationships with one or both partners. Although very common, these families often have their own unique characteristics.

Recognizing these particularities is essential to planning a fair and equitable estate among the various family members. The main challenges associated with the estate of a blended family are:

• Fairness between biological children and stepchildren
• The rights of the surviving spouse

When planning a stepfamily estate, you will want to ensure that all children, whether biological or not, are treated fairly in the estate. You will also want to ensure that the surviving spouse is adequately protected, while respecting the wishes of each deceased partner.

 

The estate and the blended family: how to plan

In Quebec, the law is quite strict when it comes to the question of estates. That's why it's important to have a clear understanding of the rules surrounding estates, so you can plan efficiently and effectively.  

 

Choice of matrimonial regime

In Quebec, Family Patrimony applies to all marriages. Nevertheless, all married or civil union couples can decide to adopt a Matrimonial Regime, which will influence the distribution of assets in the event of death. It is important to choose a regime that reflects the estate objectives of the partners and adequately benefits their respective heirs.

Quebec de facto spouses benefit neither from the Family Patrimony nor from the Matrimonial Regime. This makes it all the more important for common-law couples to ensure their inheritance through a clear will, drawn up with the help of a professional.

 

Appointing liquidators

Determining who will settle your estate can be quite a challenge. In a blended family, it’s advisable to appoint the surviving spouse and one of the deceased's children as joint liquidators.

This approach makes it possible to represent the interests of both sides of the family and ensures transparent administration of the estate. Following the death of the surviving spouse, it's a good idea to appoint a child from each family as joint liquidators, thereby making sure that both families are fairly represented and that the estate is managed impartially.

This article can help you choose the right liquidator (previously known as the testamentary executor).

 

Protecting your descendants through estate planning

One of the main concerns of parents in blended families is ensuring that their own children benefit from their inheritance. Inadequate estate planning can lead to major family conflicts and leave some family members without financial protection.

To avoid this, it’s essential to put in place suitable protection mechanisms, such as mutual wills, protection mandates and beneficiary designations.

 

Mirror wills and mutual wills

Spouses with children from previous relationships may decide to coordinate their wills so that they are identical and reciprocal. For example, their wills could specify that each of them will leave a portion of their assets to the other's children.

There are two types of "reciprocal" wills:

• Mirror wills
• Mutual wills

With a mirror will, one of the spouses can legally change his or her will at any time, during the other spouse's lifetime or following his or her death. This can result in the children of the first spouse to die winding up on the losing end and receiving only a reduced share of the final estate, or even none at all.

Mutual wills, on the other hand, come with a contract stipulating that the spouses can’t change their respective wills without each other's authorization, even after death. In this way, the rights of all beneficiaries are protected.

In all cases, drawing up a clear, precise will is essential, as without a will, assets are distributed in a way that doesn't reflect the wishes of the deceased. To find out who would inherit your property if you died without a will, consult this questionnaire.

 

Power of attorney and protection mandate

A power of attorney, called a "mandate of protection" in Quebec, is used when someone is unable to manage his or her personal or financial affairs. It’s important to note that separation or divorce doesn’t automatically cancel a power of attorney. As a result, a previous spouse may retain legal authority over the financial affairs and health decisions of a person deemed incapable of managing his or her own affairs.

It is therefore of the utmost importance to check your power of attorney documents in order to avoid conflict situations with your new spouse or with the children of a blended family.

 

Designation of beneficiaries

Have you updated the beneficiary designations on your life insurance policies and registered plans? Separation or divorce doesn’t automatically cancel previous beneficiary designations on these policies and plans, such as a Registered Retirement Savings Plan (RRSP). If they are not updated, a former spouse could receive the benefits of your estate, leaving the associated income taxes to be paid by your estate.

And did you know that bequests can benefit your heirs? This article explains the advantages of a bequest.

 

Estate planning and funeral pre-arrangements: a beneficial combination

Estate planning and funeral pre-arrangements go hand in hand. Together, they offer peace of mind by ensuring that the wishes of the deceased are respected, and that loved ones are not burdened with difficult decisions in times of grief. Just as when you settle your estate, planning your funeral pre-arrangements frees your loved ones from lots of financial stress.

 

Lucie Marsolais, Executive Director of the Aeterna Complex, explains the importance of pre-arrangements:

"Pre-arrangements help prevent conflicts at the time of death and are particularly useful in the case of a blended family. From one day to the next, or without having chosen it, your loved ones will have to manage a lot of details. By making your pre-arrangements, you enable them to simply celebrate life. Your life."

 

Among the advantages of pre-arrangements is the ability to lock in current funeral costs, thereby avoiding future increases. Aeterna offers flexible payment options, allowing expenses to be paid in ways adapted to each situation.

The Aeterna Funeral Complex distinguishes itself by its commitment to support families through every step of the pre-arrangement process. We also invite you to make a Record of Wishes in 5 easy steps using our online form.

 

Funeral services adapted to blended families

Managing funeral pre-arrangements or the death of a loved one in a blended family situation can be a complex process. The qualified professionals at the Aeterna Funeral Complex are committed to supporting you every step of the way, with respect and compassion.

Whether you're looking to make pre-arrangements or receive personalized support following the death of a loved one, contact us to make an appointment today.