Estate Planning for Blended Families: Special Considerations in Alberta

A family home or cottage is often an asset at stake when a widowed person with children remarries later in life.

Blended families (where one or both spouses have children from previous relationships) now make up roughly one‑third of Canadian households. That shift creates an estate‑planning puzzle: spouses want to care for each other and protect children from first marriages, but Alberta’s default intestacy rules don’t always balance those interests. 

In blended family situations, it's important to seek advice early. Contact Wiebe Law for a confidential estate‑planning consultation.

1. Alberta’s Legal Framework at a Glance

Question	Key Alberta Rule	Practical Impact for Blended Families
What law governs wills & intestacy?	Wills and Succession Act (WSA)	Consolidates the former Wills Act, Intestate Succession Act and others.
Intestate share for a surviving spouse/partner when there are step‑children?	Preferential share $150,000 plus ½ of the remainder; the other half goes to the deceased’s biological/adopted children.	If the estate is smaller than $150 k the spouse may receive everything, leaving step‑children nothing.
Are step‑children “descendants”?	No—unless legally adopted. See Peters v Peters Estate, 2015 ABCA 301.	Step‑children inherit nothing on intestacy unless you provide for them in a will or trust.

2. Core Risks When You Rely on a “Simple” Will

1. Unintended disinheritance – a “mirror” will that leaves everything to the new spouse can cut out children from the first marriage if the spouse later changes their own will.

2. Litigation & family discord – Peters Estate shows how sibling relationships can sour when intentions aren’t clear. 

3. Out‑of‑date beneficiary designations – RRSPs, TFSAs and life‑insurance payouts bypass the will.

3. Tools for Estate Planning for Blended Families

Tool	How It Helps	Watch‑outs
Spousal or “life‑interest” trust	Income (or use of family home) for the surviving spouse; capital passes to your children when the spouse dies.	The trust must give clear rules on encroachment so children don’t feel assets are being “spent down.”
Joint partner or alter‑ego trust (age 65+)	Assets roll into the trust now; probate avoided, privacy preserved.	Capital gains triggered when both spouses die—be sure to plan for the tax bill.
Life insurance equalization	Name children as beneficiaries so they receive a lump sum immediately, while the spouse keeps other assets.	Keep policies updated after remarriage; beneficiary forms trump the will.
Prenuptial / family property agreement	Carves out “yours, mine, ours” and clarifies support obligations that survive death.	Must meet Family Property Act formalities to be enforceable.
Detailed personal‑property memorandum	Lets you gift heirlooms (photos, jewellery) directly to children to minimise conflict.	Reference the memo in your will so it’s legally binding.

4. Tax & Administrative Nuances

• Spousal rollover vs. children’s share – Capital‑property can transfer to a spouse tax‑free on death, but not to children. If children inherit RRSPs/RRIFs directly, the terminal tax return pays the full tax bill first.

• Executor choice – A neutral professional (trust company, lawyer, accountant) can reduce tensions between step‑siblings.

5. Five‑Step Action Plan for Blended Families

1. Have the conversation – list each spouse’s assets, debts, and moral obligations (e.g., child support).

2. Engage professional advice early – coordinated legal, tax and financial planning prevents gaps.

3. Draft reciprocal—but not identical—wills that match your agreed blueprint.

4. Build in reviews every three to five years, or after any life event (new child, sale of a business, separation). 

5. Communicate your choices to adult children and key advisors; a letter of wishes cuts down speculation later.

How Wiebe Law Can Help

Our estate team focuses on blended family estate planning in Alberta. We prepare second marriage wills in Alberta that:

• honour support obligations from prior relationships,

• protect family cottages or farms with tailored trusts, and

• minimize the after‑tax cost to the next generation.

Ready to create certainty for your blended family? Contact Wiebe Law for a confidential estate‑planning consultation.

This blog is provided for general information only and does not constitute legal advice. Always consult qualified counsel about your specific circumstances.