Estate Planning for Blended Families With Substantial Assets

 Posted on September 07, 2025 in High Net Worth Estate Planning

When a family includes children from prior marriages, new spouses, and shared children, estate planning becomes more complex. High net worth individuals in Maryland face additional challenges because substantial assets, such as businesses, multiple properties, or investment accounts, require careful structuring to ensure fairness and compliance with state law. Working with a Rockville, MD high net worth estate planning attorney can help blended families protect their legacies and avoid unnecessary disputes.

Understanding the Complexities of Blended Family Estates

Blended families must navigate competing interests. For example, you may want to provide for a current spouse while also ensuring that children from a previous marriage inherit their fair share. Without a detailed plan, the Maryland intestacy rules under Md. Code, Estates and Trusts § 3-102 would apply, and those rules may not work the way you want. The statute divides assets between a surviving spouse and children, which may not align with how you want substantial wealth distributed.

Another complication involves stepchildren. Unless legally adopted, stepchildren are not automatically entitled to inherit under Maryland law. This can create tension if a parent intends to treat all children equally but fails to update documents. Clear instructions are essential for preventing confusion and ensuring that each branch of the family is recognized.

Estate Planning Tools for Protecting Wealth in Blended Families

Several tools allow high-net-worth families to divide property fairly and protect against conflict:

• Wills: A carefully drafted will specifies who inherits which assets, reducing the likelihood of misunderstandings.

• Trusts: Revocable living trusts and qualified terminable interest property (QTIP) trusts allow individuals to provide income for a surviving spouse while ensuring remaining assets go to children from a prior marriage.

• Agreements: Prenuptial or postnuptial contracts can define how marital and separate property will be treated in the event of death.

• Beneficiary designations: Retirement accounts and life insurance go directly to the named beneficiaries, so keeping designations current ensures assets reach the right people.

• Powers of attorney: Choosing someone you trust to manage money and legal matters is a way to  make sure decisions follow your wishes if you are unable to carry them out yourself.

• Healthcare directives: Advance medical directives outline your wishes for medical care and appoint someone to make medical decisions if needed.

• Life insurance trusts: Placing life insurance in a trust can provide tax advantages and ensure funds are distributed according to your plan.

There are several other tools available. An experienced estate planning attorney can help you choose the right tools and build a personalized plan that fits your family’s unique situation.

Maryland Tax and Legal Considerations for High-Net-Worth Estates

Maryland is one of the few states with both an estate tax and an inheritance tax. Under Md. Code, Tax–General § 7-309, estates above the exemption threshold may owe significant taxes. The Maryland Inheritance Tax, § 7-203, can also affect stepchildren, since they are not exempt like spouses and children. Coordinating state and federal strategies helps blended families reduce liability, protect assets, and avoid costly surprises across multiple jurisdictions.

Contact a Silver Spring, MD Estate Planning Attorney Today

If you have a blended family and substantial assets, you need the guidance of a Rockville, MD high net worth estate planning lawyer who can help you create a plan that protects your loved ones, minimizes taxes, and ensures your wishes are carried out.

At The Eleff Law Group, Attorney Susan Eleff brings over 35 years of experience in estate planning, business transactions, and commercial real estate matters. She has been recognized with an AV Preeminent rating from Martindale-Hubbell, reflecting the highest standards of skill and ethics, and holds a 10.0 Superb rating on Avvo. With her background and dedication, she is well-positioned to help you safeguard your legacy and provide peace of mind for your family. Call 301-857-1990 and schedule your free consultation to get started.