Keep your plan up to date

Life evolves, and so should your estate plan. Shifts in family structure, finances, health, or living arrangements can all affect your wishes. Reviewing your plan regularly, at least every couple of years or after major life events such as marriage, divorce, or the birth of children, helps ensure it stays relevant and reflects your circumstances.

Just as important are ongoing legal and financial advice – both pillars of a robust estate plan that cannot be overstated. Hand in hand, they help families stay informed about regulatory changes, such as updates to family provision or digital asset rules.

Australia’s legal framework offers several tools to help structure estate plans. Choosing the right mix depends on your circumstances, family dynamics, and long-term wishes.

Wills: A will is the foundation of any estate plan. For blended families, clarity is especially important to reduce the risk of confusion or disputes later.

A professionally drafted will is one prepared with the help of a qualified legal professional, usually a solicitor with estate planning expertise. Compared to DIY kits or handwritten notes, a professionally drafted will is more detailed, tailored to your circumstances, and written in precise legal language.

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In some situations, couples choose mutual wills – a pair of wills made together with an agreement not to change them once one partner passes away. These provide reassurance that children from prior relationships will be looked after, but they also limit flexibility for the surviving partner.

Letter of Wishes: Some people also include a Letter of Wishes alongside their will. While not legally binding, this letter provides context for your will decisions and guidance for executors. In blended families, it can help reduce misunderstandings by explaining your intentions.

Testamentary Trusts: A trust created within a will that comes into effect after death. It allows controlled distribution of assets – often to protect children’s inheritances – and in some cases provides tax advantages. Testamentary trusts can be complex to set up and manage, so they usually require legal guidance.

Binding Financial Agreements (BFAs): Commonly known as prenups or postnups, BFAs outline financial expectations before or during marriage. They can reduce the risk of future disputes, though they must be carefully drafted to remain valid. Like other tools, they may become outdated if major life changes occur, such as having children or large financial shifts.

The bottom line

Estate planning for blended families can be complicated, but it doesn’t have to be overwhelming. There is no one-size-fits-all approach. Early discussions – however uncomfortable – can prevent problems later on.

True peace of mind isn’t just about having a plan in place – it’s knowing your family’s financial future is secure, no matter how complex your situation. With thoughtful conversations, professional advice, and the right tools in place, you can protect your loved ones and reduce the risk of disputes further down the track.

Jeffrey Chien is a financial advisor at Viridian Advisory.

Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.

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