Blended Families in New Zealand

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Blended families have special people to consider.

Especially if one partner contributes significantly more resources to the partnership and if there are children from past relationships to take into account.  Here are some key points which blended families should consider when deciding how to organise their affairs:

1. Implications on Death or Incapacity

Establishing a clear estate plan that outlines what will happen in the unfortunate event of a partner's death or permanent incapacity is essential. This can involve signing a Contracting Out Agreement with your spouse to prevent them from claiming your estate, as well as wills that clearly specify how assets are divided between biological and stepchildren. This lessens conflict and guarantees that the wishes of the departed are respected. If a partner becomes permanently disabled or unable to work, you should also think about what will happen, who will take time off to help them recover, and whether any insurance policies are in place to help. If so, who will pay the premiums and how much will they cover?

2. Right to Occupy

The surviving partner may be entitled to live in the family home after the death of one partner. These rights, however, could cause problems in the absence of a legitimate Will and Contracting Out Agreement, especially if the surviving partner's children claim their inheritance. Clarity and protection for both parties can be achieved by establishing a right of occupation in your will and including a timeline.

3. Addressing Disparities Between Partners

In blended families, disparities in financial circumstances may lead to conflict. Open communication about asset ownership and contributions to shared costs is crucial. Fairness and transparency can be ensured by outlining each partner's rights and obligations in a prenuptial or contracting out agreement.



4. Insurance Considerations

In blended families, life insurance is a useful tool for safeguarding partners and kids. Policies can be set up to guarantee that children from past relationships receive their intended inheritance or to support the surviving partner financially. Clear policy terms and appropriately named beneficiaries are essential; it's also critical to determine who is liable for premium payments.


5. Create a Secure Framework

The agreement details which key personnel hold insurance, the specifics of the coverage, and the beneficiaries of the insurance payouts in the event of death or incapacity. This ensures that the business is financially protected and can continue to operate smoothly.


From here, book a FREE 15-minute consultation here with one of our team, who can discuss how best to structure your affairs.

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Every family's situation and dynamics are different.

Hence the need for a customised plan, feel free to book a FREE 15-minute consultation with one of our team, who can discuss how best to structure your affairs.

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