Yours, Mine and Ours – Effective Estate Planning for Blended Families

According to the last census conducted in 2021, blended and step families make up around 12 percent of Australian households. They are no longer an anomaly in the spectrum of family set ups.   

While increasingly common, these family structures present unique challenges when it comes to estate planning.

From an estate planning perspective, the key complexities we regularly see include: 

• Providing for a surviving spouse while minimising the risk that they will redirect assets and unintentionally exclude children from a first relationship; 

• Questions of fairness between different sets of biological children and stepchildren; 

• A heightened risk of disputes and litigation, with multiple parties often eligible to challenge a will. 

These issues are often compounded by common misconceptions, for example, that stepchildren automatically inherit or have no rights to challenge, that wills always cover superannuation, or that a “simple will” or even a “mutual will” will suffice. 

The reality is stark: 

• Recent research reveals that more than 60% of claims are brought by adult children of the deceased and more than 20% from partners or ex-partners. 

• When a challenge does arise, research reveals that nationally there is a high rate of success, with 74% of cases involving a change of distribution from what was outlined in the original Will. 

• Claims by partners and ex-partners were most successful with 83%, followed by children at 76% 

• Super does not automatically form part of a deceased estate, and death benefit distribution is governed by super fund rules, not the will.  

• Despite this, a 2024 survey by Super Consumers Australia, found that: 

• 36% of Australians have not made any death benefit nomination, and 

• only 24% reported having a binding death benefit nomination. 

Careful planning is essential and defensive estate planning measures can help to reduce disputes and provide clarity for all parties involved.  Ultimately, effective estate planning is not just about dividing assets. It is about protecting relationships and ensuring that your legacy is managed according to your wishes. 

In this episode of Explain That by Velocity Legal, host Andrew Henshaw is joined by Doyles Guide recognised Director Jennifer Maher and Senior Associate Elicia Raucchi from our Wills, Trusts & Estates team to unpack how to protect your intentions for your estate while balancing competing needs across “yours, mine and ours”.

What we cover:  

• Why asset ownership (and who controls it) matters more than you think
• Stepchildren claims: when can they challenge?
• Life interests vs practical alternatives
• Family trusts: “read the deed” and fix control risks
• Superannuation nominations (including SMSFs) and conflict traps
• Powers of Attorney that don’t undo the plan