How to Ensure All Children Are Treated Fairly in a Second Marriage
Case Study: Mr. and Mrs. Hargreaves – Protecting children in a second marriage
When Mr. and Mrs. Hargreaves from Ormskirk approached us, they were facing a common yet complex challenge faced by many blended families. Both had been married before and brought children from their previous relationships into their new marriage. They wanted to ensure that their individual children were provided for after they passed away while also ensuring that the surviving spouse would be financially secure.
Their Concerns
Mr. Hargreaves has two adult children, while Mrs. Hargreaves has three. Their key concerns included:
- Fairness: They wanted to make sure each of their children benefited from their respective estates without any disputes.
- Security for Each Other: They didn’t want the surviving spouse to face financial difficulties if one of them passed away first.
- Avoiding Family Tensions: With five children involved, they worried about the possibility of disagreements or misunderstandings about inheritance.
- Inheritance Tax: They wanted to explore ways to reduce the tax burden on their children.
Our Approach
After an initial consultation at their home in Halsall, we took the time to fully understand their family dynamics, their financial position, and their goals. Together, we developed a tailored estate plan that addressed their concerns.
- Mirror Wills with a Property Trust
We set up mirror wills containing a property trust. This allowed Mr. and Mrs. Hargreaves to ensure that the surviving spouse could remain in the family home for their lifetime, but the value of the property would ultimately be divided between their children as specified in the trust. This provided security for the surviving spouse while ensuring their children would benefit equally in the future. - Life Interest Trusts
In addition to the property trust, we advised them to establish life interest trusts for any savings and investments. This protected their respective assets while still allowing the surviving spouse to draw income from them during their lifetime. - Letter of Wishes
We helped them draft a detailed letter of wishes to accompany their wills. This provided clarity about how personal items, sentimental belongings, and smaller gifts should be distributed among their children. - Lasting Powers of Attorney (LPAs)
To future-proof their plan, we assisted Mr. and Mrs. Hargreaves in setting up LPAs for property, finances, and health decisions. This ensured that, should either of them lose capacity, their wishes would still be followed. - Inheritance Tax Advice
We reviewed their estate in detail and identified ways to utilise available allowances and reliefs, such as the residence nil-rate band, to minimise inheritance tax.
The Outcome
Mr. and Mrs. Hargreaves now have peace of mind knowing their respective families will be cared for, and their wishes will be honoured. They’ve protected their children’s inheritances while ensuring financial security for each other. Most importantly, they’ve removed potential sources of conflict and confusion for their family.
Could This Be Your Story?
Many families in Ormskirk and across the North West face similar challenges when it comes to estate planning in blended families. It can feel overwhelming to balance fairness, security, and tax efficiency—but that’s where we can help.
If you’re in a second marriage, have children from previous relationships, or simply want to ensure your loved ones are protected, get in touch with us today. We’ll create a clear, tailored plan that works for your family, just like we did for Mr. and Mrs. Hargreaves.
Contact Hexagon Life Planning Services Ltd today to book a free initial consultation.
(Your family’s future is too important to leave to chance.)
