Estate Planning Essentials for Blended Families in Illinois

Blended families are becoming increasingly common in Illinois. Many people remarry after divorce or widowhood, bringing children from prior relationships into a new marriage. For high net worth families, this dynamic adds both opportunity and complexity when it comes to estate planning. 

Without a careful strategy, the goals of protecting a new spouse, making sure children from all relationships are treated fairly, and protecting wealth across generations can come into conflict. At Gierach Law Firm, our Naperville, IL estate planning attorney has decades of experience guiding high net worth families through these challenges. We listen closely to every client so we can offer customized solutions to every family’s needs. 

The Unique Estate Planning Challenges that Blended Families Face

In a first marriage with shared children, estate planning is straightforward: spouses leave assets to each other, and children inherit after the second spouse passes. In a blended family, however, several competing interests need to be balanced:

• Ensuring a surviving spouse is financially secure
• Protecting the inheritance rights of children from a prior marriage
• Protecting family businesses, trusts, or real estate from being diluted or sold
• Dealing with how or whether stepchildren, who have no automatic inheritance rights under Illinois law, should be included in an estate plan
• Managing the tax consequences of passing on significant wealth

For high net worth families, the risks are magnified. A poorly structured estate plan can trigger avoidable estate taxes, lawsuits among family members, or the forced sale of valuable assets. Much of this can be avoided with careful planning. 

Probate Law for Unprotected Estates

Illinois follows the Illinois Probate Act (755 ILCS 5). Without an estate plan, the law says your estate will be distributed under intestacy rules. For blended families, this can easily lead to unintended outcomes. For example, a surviving spouse is entitled to half of the estate, with the other half divided among the decedent’s children. While this may sound balanced, it can leave a spouse without enough support, or leave children without access to specific assets.

High net worth estates also risk expensive probate costs and long delays. Privacy can also become an issue because probate is a public process. For many families, avoiding probate through careful planning is in their best interest.

Is a Will Enough to Protect My Estate? 

A simple will rarely meets the needs of a high net worth blended family. A will can say who receives your property, but it cannot prevent probate, lower estate taxes, or provide flexibility. Instead, better, stronger estate planning tools are needed.

One of the most powerful tools for blended families is a trust. Trusts can be customized to support a surviving spouse while preserving assets for children. For example, a Qualified Terminable Interest Property (QTIP) trust allows income from trust assets to support the surviving spouse during their lifetime, but ensures the principal passes to children from a prior marriage when the spouse dies. This structure prevents the surviving spouse from moving assets away from children.

High net worth families may also use generation-skipping trusts to transfer wealth to grandchildren, dynasty trusts to preserve wealth across multiple generations, or charitable trusts to integrate philanthropy into the plan. Each tool can be designed to reflect family priorities while minimizing taxes.

Protecting Business and Real Estate Assets with an Estate Plan

Many affluent families in Naperville and the surrounding areas own closely held businesses, investment properties, or vacation homes. Without careful planning, these assets can be vulnerable in a blended marriage. Children from different marriages may disagree about whether to sell or keep the business, while a surviving spouse may rely on the income it generates.

Buy-sell agreements, family limited partnerships, and irrevocable life insurance trusts (ILITs) can provide liquidity and clarity. For example, life insurance can equalize inheritances; children who are not involved in the family business may receive insurance proceeds, while active children inherit business interests.

Do Stepchildren Have Inheritance Rights?

Under Illinois law, stepchildren do not automatically inherit unless they are legally adopted. This creates a risk of unintentionally excluding stepchildren a stepparent wants to provide for. 

Trusts and beneficiary designations are a great way to make sure stepchildren are included in an estate plan. Conversely, if you do not intend to leave assets to stepchildren, your documents should make that clear.

Prenuptial and Postnuptial Agreements and Estate Planning

For high net worth individuals entering a second or third marriage, a prenuptial or postnuptial agreement can be a very important estate planning tool. These agreements say how assets will be divided in a divorce or death, protecting wealth for biological children while still providing for a spouse. Courts in Illinois will generally uphold these agreements if they are entered into voluntarily and with full disclosure.

Tax Planning for High Net Worth Families

As of Jan 1, 2026, the federal estate tax exemption will increase to $15 million per person and $30 million for a married couple. For very affluent families, this means estate tax exposure is a real concern. Illinois also imposes its own estate tax on estates over $4 million per person, with no portability between spouses.

Trusts, lifetime gifting strategies, charitable donations, and family limited partnerships can all reduce estate tax burdens. For blended families, the tax plan must also allow for fairness among children and adequate support for a surviving spouse.

Update Your Beneficiary Designations After Remarriage

Even the most carefully drafted estate plan can be undone if retirement accounts, life insurance, or payable-on-death accounts list outdated beneficiaries. A former spouse may remain listed, unintentionally disinheriting current family members. Regular reviews and updates to all beneficiary designations are essential to ensure they align with your wishes.

Contact a Naperville, IL Estate Planning Attorney for Blended Families

If you are part of a second marriage and have valuable assets to plan for, do not leave your estate plan to chance. At Gierach Law Firm, our Naperville high-value estate plan lawyer will work with you to design a plan that reflects your values and plans for the future of your wealth. Call us today at 630-756-1160 to schedule your consultation.