When planning an estate, there are many factors you may want to take into consideration, including if you have a blended family. It is becoming more common these days for spouses to have subsequent relationships and bring their children into the family from their prior relationships, this is what we call a blended family. There are certain steps to be taken to ensure not only your children but your spouse’s children are looked after.
The Mirror Will and the Mutual Will are often used in estate planning for blended families. While these terms are often used interchangeably, there are important differences between the two.
Mirrored Will
Mirror Wills are frequently used and typically created when both spouses produce their Wills with identical provisions. These provisions often include spouses leaving everything to each other and if that spouse predeceases them, the remainder will go evenly to their children. In the Mirror Will situation, the surviving spouse has full control and ownership over the deceased spouse’s property and assets. There are no restrictions on what they can do with it. They also are not restricted to changing their own Will, since they may live much longer and have additional spouses or children.
An issue with Mirror Wills is that they are made under the impression that everyone got along and had the best of intentions; however, after one of the spouses passes, it may be that the relationship between the surviving spouse and the stepchildren breaks down. Nothing can stop that surviving spouse from revising their Will and disinheriting those stepchildren altogether. In B.C., stepchildren don’t have the standing to bring an application to vary the Will of the surviving step-parent. Therefore, the intentions of the deceased spouse will not be carried out and their biological children could end up with nothing.
Mutual Will
The alternative to a Mirror Will is a Mutual Will. There are similarities between the two in that the terms will often mirror each other; however, the key difference is that under a Mutual Will, the spouses agree that they will not change their Wills without the express agreement of one another. This agreement continues after the spouse’s death. These are frequently used in blended family situations as they give some additional assurance that your children from your prior relationship will be looked after.
For a Mutual Will to be binding, there must be clear and unequivocal evidence that the parties intended to enter into a Mutual Will as opposed to Mirror Wills. This means that the evidence must show that the parties effectively wanted to enter into a contract with each other that they would not change or revoke.
The drawback of a Mutual Will is its restrictive nature. If a surviving spouse lives for several years, they may have significant changes in their life and want to adjust their estate. There will be additional factors they’ll have to take into account so that they honor the terms of that Mutual Will.
In summary, blended families do bring in additional considerations when planning an estate that may not be apparent at first. Our Wills and estate planning team can assist you to make sure that your beneficiaries are well looked after once you are gone.
