[IN] How can I structure my estate plan to fairly divide high-value assets in a blended family and avoid probate issues?

IN Estate Planning

Legal Eagle

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Your will controls your probate estate, but many assets pass outside probate based on title or beneficiary designations.

Your marketable securities in your name are probate assets unless you add a transfer-on-death beneficiary.
Your 50% LLC interests are probate assets, but operating agreements may limit who can inherit and what rights they receive.
The $1.9MM note payable from the business sale is also a probate asset and can be directed to specific beneficiaries.
Life insurance passes outside probate and can be used to balance distributions. (IN Code § 32-17-13-1 (1)(b)(2-3))
Clear dollar-based allocations are better than vague percentages, especially where conflict is likely.
If minor children are involved, trusts are often the safest structure.

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I completed an eForms Last Will and Testament document from your site for the state of Indiana. I have a blended family — my wife with two minor children, and three children from a previous relationship.

In my will, it looks like I leave half of my estate to my wife and the other half to my five kids. It seems like my three kids from my prior relationship are getting shortchanged. How can I, or should I, balance asset distribution in my will to satisfy Indiana probate laws?

Lexi, Chatbot

I understand your concern about ensuring fair asset distribution among your blended family. Have you already discussed your estate plans with your wife and children?

Yes. My wife wants a larger share and wants no part of my three children from my previous relationship.

Lexi, Chatbot

Are there specific assets or types of property that you are particularly concerned about distributing fairly?

Life insurance, marketable securities, and real estate holdings — all high value.

Legal Eagle

Hello, I’m Legal Eagle. I’m an attorney who works in this area of law, and I’ll help you sort this out today.

I’ve read what you shared, so let’s go over what’s happening and your best next steps.

Which specific assets are titled jointly with your wife, have named beneficiaries (like life insurance or transfer-on-death accounts), or are held in a trust? And what are the approximate values?

Marketable securities in my name, approx. value $2MM.

Five LLC companies that hold rental properties — I own 50% of each, and my cousin owns the other 50%.

I also have a note payable to me from the sale of my business.

Legal Eagle

Thank you — that helps a lot.

Do you and your wife have a prenuptial or postnuptial agreement addressing inheritance or asset distribution?

Note payable from sale of my business, payable to me, outstanding principal $1.9MM.

Single-family residence titled to me and my wife, value $3MM.

No pre- or postnup.

Legal Eagle

Got it. Have you considered setting up any trusts or other estate-planning tools to manage distributions, especially for your minor children?

There’s current conflict in the marriage. My wife does not want any part of my three kids from my prior relationship. I’m trying to be fair.

Can I set up trusts for assets in my name on my own, without my wife being involved?

Can I change the beneficiary on the life insurance policy on my life ($4MM) anytime I want?

Legal Eagle

I understand what you’re getting at. Were there any other facts you’d like to add before I give you a full answer?

I want to make sure all of my kids get a fair share and my wife also gets a fair share.

I’m not sure how Indiana probate will treat my will if I don’t set up trusts.

My wife wants a larger share and wants to cut out my three kids from my prior relationship.

Legal Eagle

Okay — I just need a little time to draft a high-quality response. I’ll be with you shortly.

Thanks. I’m worried Indiana probate won’t follow my wishes if I don’t follow their standards.

I completed the eForms will on your site — maybe you can take a quick look at that document.

Legal Eagle

Thank you for chatting with me. I understand why you’re worried — blended-family planning in Indiana can get complicated fast.

Legal Eagle

Your will controls your probate estate, but many assets pass outside probate based on title or beneficiary designations.

Your marketable securities in your name are probate assets unless you add a transfer-on-death beneficiary.
Your 50% LLC interests are probate assets, but operating agreements may limit who can inherit and what rights they receive.
The $1.9MM note payable from the business sale is also a probate asset and can be directed to specific beneficiaries.
Life insurance passes outside probate and can be used to balance distributions. (IN Code § 32-17-13-1 (1)(b)(2-3))
Clear dollar-based allocations are better than vague percentages, especially where conflict is likely.
If minor children are involved, trusts are often the safest structure.

Legal Eagle

Does that help clarify things?

What about the life insurance policy on my life?

If I change the beneficiary from my wife to my three kids, does that help balance things based on the will percentages?

Legal Eagle

Yes, that can make sense. Life insurance passes outside probate, so naming your three children can help offset what your wife receives through probate assets.

The key is comparing projected dollar amounts, not percentages, and confirming there are no policy or spousal-consent restrictions.

So my marketable securities, note payable, and LLC real estate interests are all subject to probate distribution, regardless of what my will says?

And what about my home titled to me and my wife — does she get that outright, or does Indiana probate divide it?

Legal Eagle

Great questions.

Marketable securities and the note payable are generally probate assets and follow your will unless you add beneficiary designations.
Your 50% LLC interests are typically probate assets, but operating agreements matter.
Your home depends entirely on the deed language. If it includes survivorship rights, your wife likely receives it automatically outside probate. If not, your share may pass through probate under your will.

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