Question about Wills, Life Insurance-- how did you handle it?
Maybe this would be better answer under the legal section, but questions about how to handle insurance policies, wills, etc in a blended family?
Right now—I am pregnant with our first child, DH has a child from a previous marriage.
For his child—he has a life insurance policy set up in his ex wifes name to cover the expenses / cost of raising should he pass away before they turn 18
For us, he has a separate insurance policy listing me as the beneficiary. I also have a separate policy I brought into the marriage that I changed over to him as the primary beneficiary with my parents being secondary, should something happen
My questions are pertaining to wills and how all of that is split up.
Hypothetical #1: If he passes first, how should we split up the assets and the estate? Would I need to pay out my stepchild first and then what is remaining pass on to our children? Or wait until I pass and then split it all up evenly amongst all the kids? We plan on having 2, so there would be 3 total.
Hypothetical #2: If we both passed in a freak accident, who would be best to have listed as a power of attorney in these situations? Right now I think my MIL is the one listed, but obviously MY family is going to be heavily invested on what happens to my kids, and would want some say. So, should we split it out to where my MIL has POA over the life insurance policy in place for my stepkid and my mom have POA over the policies in place over mine?
I want to make it as even as possible, which is tough to do when there’s two family units basically being accounted for under the umbrella of one marriage—and I’m not looking to shaft my stepchild at all, but I DO want to make sure *my* kids are well taken care of and represented fairly.