How to Provide for a Partner and Leave Money for Your Kids
Estate planning is not always straightforward, especially when your life and family structure do not fit into a traditional mold. One common scenario I hear about often is this:
What happens if I want to provide for a significant other like a boyfriend, girlfriend, or partner after I am gone, but also want to make sure there is something left for my children once both of us are gone?
If this sounds like you, read on. This is especially common in blended families, including second marriages or relationships with children from different partners.
The Challenge in Blended Families
In these situations, people often want to ensure their significant other has a place to live or financial support after they pass away, but they also want to protect their children’s future inheritance. Balancing both priorities is completely possible with the right legal tools.
The Right of Occupancy Provision
One effective strategy is to include a Right of Occupancy Provision in your trust. This provision allows your partner to continue living in your home after your death without having to pay rent, or under specific terms that you choose. For example, you may require them to cover property taxes or maintenance, or you may allow them to live there rent-free for life.
The home itself stays owned by the trust, not by the partner. That means:
• Your partner has the right to live in the home under your terms
• Once your partner passes away or no longer uses the home as their primary residence, the home is either transferred to your children or sold
• The proceeds from the sale benefit your children or other named beneficiaries
Protecting Your Wishes
By keeping the home in trust and including a Right of Occupancy Provision, you also prevent your significant other from changing the arrangement after you are gone. They can live in the home according to the terms you have set, but they cannot redirect where the home or the proceeds go in the future.
Want to learn more about providing for your partner while still protecting your children’s inheritance?
I help families create thoughtful, legally sound plans that balance the needs of blended families and nontraditional relationships. If you have questions about setting up a trust that supports your significant other without compromising your children’s future, I can help you design a plan that fits your goals. Whether you need to create a trust or review your current plan, click the link below to schedule a call with me today. I’m always happy to help!
To learn 80% of what you need to know about estate planning in less than 30 minutes, check out my full-length video. It’s a quick and comprehensive guide to help you understand the basics and start taking steps to secure your future.
