Testamentary trusts for blended families
Blended families benefit from testamentary trusts that give lifetime income to a partner while preserving capital for biological children.
In blended families, a testamentary trust can provide income (and sometimes housing) to a surviving spouse for life, while the underlying assets pass to biological children from a prior relationship on the spouse's death. This structure balances care for the new partner with preservation for the biological children.
The core structure
The testator leaves assets to a testamentary trust on their death. The surviving spouse receives income from the trust for life (and sometimes a right of residence in the family home). On the spouse's death, the trust winds up and the remaining capital passes to the testator's biological children.
Lifetime income vs capital
The trust can distribute income to the spouse (typically interest, dividends, rent) while keeping capital intact. This requires assets that produce income – investment property, shares, interest-bearing accounts – rather than a home that produces no income.
Right of residence combined with trust
A testamentary trust can include a right of residence: the surviving spouse lives in the home for life, while the underlying property is held by the trust for the biological children. The trust maintains insurance and major repairs; the spouse pays utilities and day-to-day costs.
Trustee selection
In blended families, the trustee selection matters a lot. An independent trustee (a professional trustee or a neutral family member) avoids conflicts where the spouse's interests and the biological children's interests might differ.
Family provision risk
Testamentary trusts in blended families can still be challenged via family provision claims. Careful drafting, clear documentation of intent, and sometimes a modest direct gift to the spouse (alongside the trust structure) reduces the risk.
Summary
Blended families benefit from testamentary trusts that give lifetime income to a partner while preserving capital for biological children.
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Disclaimer: This article is general information only and does not constitute legal advice. Estate planning is deeply personal - every family's circumstances are different. For advice specific to your situation, please contact Rosewood Succession Solicitors.