A Cinderella Story? Or just a Cinderella Clause.

Epic Will Team Oct 11, 2023

Have you ever heard of the ‘Cinderella Clause’? And no, it has nothing to do with singing mice, fairy godmothers, or becoming a Princess because of a good pair of shoes. The Cinderella Clause actually references how Cinderella, heir apparent to her father’s vast estate, ended up a slave in her own home to her wicked stepmother. While it’s not an official legal term, a Cinderella Clause is a nickname term in estate planning for what can happen in blended families without clear communication and planning.

To further illustrate this point, let’s say a man named Dave has two children from a previous marriage (we’ll call them John and Jack), and he and his new wife, Donna, have a child of their own (let’s call her Susie). Dave goes through his Will and decides to leave everything to his wife Donna, and IF she dies before him, then all his assets would be left to his children, John, Jack, and Susie in equal shares.

Because they are creating their Will together, Donna says she also wants to leave everything to Dave and names her step-sons John and Jack as her “children” in addition to Susie, and she leaves everything to them in equal shares. This essentially means if Dave passes first and all his estate goes to Donna, she is then going to make sure her stepchildren get an equal share of the estate.

Tragically, Dave passes away, and his entire estate passes to Donna. After grieving, and in a villain-like plot twist, she then decides to change her Will in favor of only HER daughter—Susie. So she changes her Will and only references her daughter as her child. This excludes John and Jack from the inheritance that their loving father intended for them. Since Donna isn’t legally bound to tell her children the changes made to her Will, they only discover this change once she passes, and everything is left to Susie – leaving John and Jack distraught, without a penny, and at the beginning of their own villain origin story.

“SURELY, this won’t happen in my family!” you might think…and maybe you’re right. But, if you‘re not in the place to work with an attorney who’s able to get into the weeds with you, the best way to ensure that your entire family is cared for according to your wishes is to leave your Residual Estate to your entire family in portion designations.

Essentially, you would designate a percentage of your estate to each of the surviving family members. So, if Dave could hit an afterlife re-do button and wanted his possessions divided equally, he would leave 25% to Donna, 25% to John, 25% to Jack, and 25% to Susie. Dividing his estate this way would make the need for singing mice and glass slippers entirely moot.

Be mindful, however, that each state has a set minimum that a surviving spouse can receive, so if Donna’s percentage is less than her statemandated minimum, she can choose to claim the state-mandated minimum instead.

An alternative way to provide a financial benefit for your children is to acquire a Life Insurance policy and specifically name each of your children as a beneficiary.

Regardless of how you would like your estate divided, a Will enables you to ensure your wishes are carried out. With Epic Will, you can create your Will in as little as five minutes and ensure your children receive the inheritance you’ve worked so hard to give them.

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Here at Epic Will, we’ve thought of everything so you don’t have to. We’ve created a quick and simple way to start preparing your Will online in as little as 5 minutes so you can protect your family, leave your legacy, and live with confidence knowing your final wishes are documented and legally binding.

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