Estate Planning for Non-Traditional Families

Estate planning is important for everyone, but it often requires additional consideration for non-traditional families. These families may face unique legal challenges that aren’t addressed by standard estate plans. By creating a tailored plan, families can safeguard their interests and respect their wishes.

Maryland law recognizes many family structures, but some relationships may still need extra legal reinforcement. This is especially true for households that don’t fit the conventional mold.

At the Law Offices of Julie A. Schejbal, CHTD, we know the path forward and how a well-crafted plan can help you avoid family conflicts and safeguard the people you care about most. Located in Dunkirk, Maryland, our firm also serves clients throughout Calvert County, Prince George’s County, Charles County, and St. Mary's County.

Let's explore key estate planning considerations for non-traditional families in Maryland, and how thoughtful preparation today can bring peace of mind tomorrow. Learn how you can take control of your legacy and start building a plan that truly reflects your family.

What Makes a Family Non-Traditional?

Non-traditional families come in many forms. They can include unmarried partners, blended families, same-sex couples, multi-generational households, or chosen families that aren’t connected by blood or marriage. In these situations, relationships that are emotionally significant may not automatically carry legal recognition.

Without formal documentation, individuals outside the legal definition of “next of kin” may not have inheritance rights or the authority to make medical and financial decisions. Estate planning allows non-traditional families to establish legal recognition for these relationships, offering clarity and reducing the risk of conflicts.

Why Estate Planning Is Critical for Non-Traditional Families?

State laws often provide a default inheritance structure for traditional families. For example, spouses and children typically inherit assets under Maryland’s intestacy laws. However, in non-traditional families, those same laws may not reflect the person’s true intentions.

Estate planning gives individuals the ability to:

• Choose beneficiaries who aren't automatically recognized by law

• Grant decision-making power to trusted individuals

• Avoid probate disputes among relatives

• Protect minor children from uncertainty about guardianship

By creating a legally sound plan, individuals can make sure their assets and decisions reflect personal priorities instead of default state rules.

Wills and Trusts for Non-Traditional Families

A will is the cornerstone of most estate plans. It allows someone to state exactly who should inherit assets, appoint guardians for minor children, and name an executor to carry out instructions. For non-traditional families, this is especially important to prevent assets from defaulting to legally recognized relatives instead of intended beneficiaries.

Trusts can also be valuable. They offer more privacy than a will, can bypass probate, and can provide ongoing management of assets. A revocable living trust, for example, allows the creator to maintain control during their lifetime and transfer assets smoothly upon death. Irrevocable trusts may be used for tax planning or asset protection.

In blended families, a trust can help balance support for a current spouse while preserving assets for children from previous relationships. For unmarried partners, it can provide financial security that state law wouldn’t automatically offer.

Medical and Financial Decision-Making Authority

In Maryland, if someone becomes incapacitated without advance directives, medical and financial decisions may fall to legally recognized relatives. For non-traditional families, this could mean that a partner, close friend, or other significant person is excluded from having a say.

Two documents are essential in this area:

• Advance medical directive: Names a health care agent to make medical decisions if the person is unable to do so.

• Durable power of attorney: Grants authority to manage financial matters, such as paying bills or accessing bank accounts.

By formally naming trusted individuals, non-traditional families can prevent disputes and make sure decision-making power is placed in the right hands.

Protecting Children in Non-Traditional Families

Guardianship planning is critical for parents in nontraditional families. Without clear instructions, courts may appoint a guardian based on legal ties rather than emotional bonds. This could result in children being placed with relatives the parents wouldn’t have chosen.

Parents can nominate a guardian for minor children through a will. While the court has the final say, strong documentation carries significant weight. A trust can also be used to manage funds for children, controlling how and when they receive money.

In cases involving stepchildren or children from previous relationships, legal adoption may be worth considering. Adoption can give a non-biological parent full legal rights, including the ability to make decisions and inherit property.

Planning for Blended Families

Blended families often have unique concerns, particularly regarding inheritance. A parent may wish to provide for a current spouse while also protecting the interests of children from a prior marriage. Without careful planning, this balance can be difficult to achieve.

Options include:

• Creating separate trusts for a spouse and children

• Using life insurance to provide for one group while leaving other assets to another

• Clearly specifying how jointly owned property will be distributed

Open communication and thorough documentation can reduce misunderstandings and avoid future disputes.

Addressing Same-Sex Couples’ Needs

While Maryland recognizes same-sex marriage, unmarried same-sex couples may not have automatic rights to inherit property or make decisions for one another. Even married couples may benefit from additional legal protections to reinforce their wishes.

A comprehensive estate plan for same-sex couples can include:

• A will or trust to direct asset distribution

• Advance medical directives to grant decision-making authority

• Property agreements to clarify ownership and inheritance rights

By taking these steps, couples can avoid relying solely on default laws and make sure their wishes are carried out.

Chosen Families and Close Friendships

Many people consider friends or non-relatives as family. However, under Maryland law, these individuals typically have no automatic legal rights. Estate planning can bridge this gap by naming them as beneficiaries, decision-makers, or guardians where appropriate.

Designating trusted individuals in wills, trusts, and powers of attorney gives chosen family members legal authority that state law would otherwise withhold. Without this documentation, their involvement could be limited, even if they’ve played a significant role in someone’s life.

Tax Considerations in Maryland

Maryland is one of the few states that has both an estate tax and an inheritance tax. The inheritance tax applies to property passed to individuals who aren’t exempt relatives, such as parents, children, siblings, or spouses. This means that in non-traditional families, beneficiaries like unmarried partners or friends may face tax liabilities.

Planning strategies may include:

• Using trusts to transfer assets in a tax-efficient manner

• Gifting property during one’s lifetime to reduce the taxable estate

• Purchasing life insurance to help beneficiaries cover any tax obligations

By accounting for tax implications in advance, non-traditional families can help preserve more assets for their intended recipients.

Digital Assets and Online Accounts

Digital property is an important consideration in modern estate planning. This can include social media accounts, online banking, cryptocurrency, and cloud storage. Without proper planning, access to these assets may be lost.

Maryland law allows individuals to grant specific authority over digital assets in a will, trust, or power of attorney. Including these provisions assures that someone can manage online accounts, retrieve important files, and protect personal information after death or incapacity.

The Importance of Periodic Reviews

An estate plan should reflect current relationships, assets, and legal requirements. Non-traditional families, in particular, may experience changes in structure or circumstances that require updates. Marriage, divorce, adoption, relocation, or the purchase of significant property can all impact existing plans.

Reviewing an estate plan every few years, or after major life events, helps maintain its relevance. This proactive approach can prevent outdated instructions from causing unintended results.

Avoiding Disputes Through Clear Communication

One of the most effective ways to reduce the risk of conflict is to communicate intentions openly. While legal documents carry authority, discussing plans with beneficiaries and decision-makers can provide additional clarity.

This is especially valuable for non-traditional families, where expectations may differ from standard legal outcomes. Explaining the reasoning behind decisions can help prevent misunderstandings and foster acceptance.

Contact an Estate Planning Lawyer Today

If you're part of a non-traditional family in Maryland, a well-crafted estate plan does more than protect your assets—it protects your loved ones from conflict and makes sure your wishes are respected, no matter what your family looks like. At the Law Offices of Julie A. Schejbal, CHTD, we serve Dunkirk, Maryland, and surrounding areas, including Calvert County, Prince George’s County, Charles County, and St. Mary's County. Call today to get started.