/General/General%201.png?width=1280&height=853&name=General%201.png)
Healthcare Provider Update: FedEx's healthcare provider is primarily Cigna, which partners with the company to offer health insurance solutions to its employees through a range of plans, including High Deductible Health Plans paired with Health Savings Accounts. In 2026, FedEx employees may face significant healthcare cost increases, mirroring a broader trend across the nation. With the expected elimination of enhanced ACA premium subsidies, some workers could see their out-of-pocket premium costs surge by over 75%. Coupled with the anticipated double-digit rate hikes from major insurers and rising medical expenses, the financial burden on employees is poised to escalate sharply, potentially impacting their overall healthcare affordability. Click here to learn more
FedEx employees in blended families must take proactive estate planning steps to prevent inheritance disputes, and Tyson Mavar of The Retirement Group, a division of Wealth Enhancement Group, emphasizes that trusts, prenuptial agreements, and clear communication are essential to ensuring assets are distributed according to their wishes.
FedEx employees with blended families must take proactive steps to ensure their estate plans reflect their true intentions—without proper planning, unintended disinheritance and legal battles can arise,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group. 'By leveraging trusts, clear beneficiary designations, and impartial executors, families can help protect their loved ones and prevent future conflicts.
In this article, we will discuss:
Key estate planning challenges faced by blended families – Understanding the risks of inequitable inheritance and legal disputes.
Strategies to ensure fair inheritance – Exploring trusts, wills, and other planning methods to protect all family members.
The role of legal tools such as prenuptial agreements and trusts – How these documents can help prevent conflicts and ensure financial security.
More and more FedEx employees in the United States are now in relationships that include children from previous marriages. This blended family usually gets along quite fine until it comes time to put a will into action. There are, however, some issues that may arise at this point and cause a lot of emotional and financial loss to the family.
For married FedEx couples with children, the normal practice in classic estate planning is to have all the assets go to the surviving spouse and then to the children. However, this is a big problem in blended families because the surviving spouse is not usually legally required to disburse stepchildren. This has often led to stepsiblings inheriting the entire inheritance while stepchildren are completely cut off, which has caused a lot of family tension and expensive legal battles.
The main issue can be described as follows: Minneapolis estate attorney Marya Robben from Lathrop GPM points out that “When the tie that binds dies, there is no need to get along.” Before the funeral, in one of her cases, the kids had thrown their stepmother out of the family house and changed the locks. But in other cases, adult children were shocked to discover that their parents had nothing left and that their new partner or husband had inherited everything. Robben notes, “There is no right for adult children to inherit.”
At least one in five opposite-sex couples in the United States who lived together in 2021 had at least one partner who had a child from a previous relationship, according to the U.S. Census Bureau data. Lawyers were able to attest to the fact that will contests are becoming more common among blended families despite the fact that there is no public information available on this issue.
The Importance of Advanced Estate Planning
It is crucial for FedEx blended families to plan for the future so as to avoid problems in the future. Inequitable distribution of assets is a problem that cannot be solved without making some rather difficult decisions when there are children from previous marriages and new spouses.
Barbara and James Kurtz, who in 1995 established a joint trust to assist the children to equally inherit the residual assets of the trust at the death of the second parent, is a good example of this complexity. But when Barbara died in 2010, James was able to transfer all the assets to a new trust and name his son as the only beneficiary. The children who were disinherited by Barbara’s children argued that the assets should have been divided as required by the initial joint trust. Last year, the Michigan Court of Appeals ruled that James could not withdraw all the assets from the original trust and Barbara’s children were awarded the shares. The next step will be to establish in the upcoming trial which assets can be linked to the previous joint trust.
Lawyers recommend that more planning can prevent some of these risks. Caroline McKay, a senior wealth strategist at CIBC Private Wealth, explains that people may often feel that their children have not received their inheritance and, therefore, recommend that separate trusts be created outside of the main estate planning for the stepparent if the stepparent is close in age to the children. Another way of ensuring that children get their inheritance is to give them their inheritance while they are still alive or to leave them a certain amount of money or a certain percentage of the estate when you die. Some of FedEx couples, however, have their biological children in the main estate plan while creating a separate trust for the new spouse and stepchildren.
The Role of Prenuptial Agreements
A prenuptial agreement is a crucial estate planning device along with wills or trusts for the FedEx blended families. Divorced father Tom Normand, an estate planner, and Helen Pickle, a retired teacher, married later in life and signed a prenuptial agreement so that each of them could leave their own children their own property.
Featured Video
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
The surviving spouse in Texas is entitled to one half of the community property and not the deceased’s separate property unless otherwise provided for. Most of the states permit the surviving spouse to take a certain portion of the inheritance, it could be one-third or one-half. Pickle wanted to leave her house to her children, so Normand had to give up his homestead exemption.
Some problems that may arise include: spouses are in charge of each other’s funerals and medical decisions and this can be a problem if the children have different ideas. In order to avoid these arguments, Normand, 83, and Pickle, 73, have made their funeral arrangements known. Bishop Rayford High Jr. and his ex-wife, Rev. Ann Normand, both in their 70s, also signed a prenuptial agreement to ensure that their respective children would receive their distinct inheritances.
How to Ensure That Different Inheritances
After remarrying Donald when she was in her 50s, the couple has five children. When the second spouse died, then the estate plan would have continued to the children and the surviving spouse would have taken everything first. But Schultz established a different trust for her biological children because her father wanted his inheritance to be passed on only to his lineage. This way, she was able to ensure that only her children would receive her father’s estate after her death and her husband was okay with it.
Choosing Trustees and Executors
It is very important in FedEx blended families to choose the right executor or trustee. Retired estate planner Paul Hood advised that it may be better to appoint an independent person instead of a child or a relative on either side. This minimizes conflict and accusations of bias to some extent.
Selecting guardians was a difficult task for Cleveland couple Heather and Andy Hetchler who married with six children. They did not want to appear to be favoring one side or the other and as their children got older they named Heather’s brother as the successor trustee.
In Summary
It requires a lot of thought and quite often quite complex provisions in order to provide for an equal and conflict-free distribution of assets within the context of estate planning for FedEx blended families. Inter-family trusts, prenuptial agreements, and impartial executors can help reduce the chances of inheritance conflicts and preserve family bonds. The idea is to predict such a problem and solve it prior to it occurring so that every member of the family is provided for and treated equally.
Research shows that lack of communication and complex planning make 70% of blended family estate plans fail to achieve the decedent’s intent. Stressed the importance of proactive and open estate planning in the context of a mixed family situation, it is possible to significantly reduce the conflict and make the transfer of assets far smoother by ensuring that everyone has clear, written-down instructions.
Sources:
Cunningham, James L. Jr. Estate Planning for Blended Families: Pitfalls and Solutions. CunninghamLegal, 2019. https://www.cunninghamlegal.com/estate-planning-for-blended-families-pitfalls-and-solutions/ .
Trust & Will. Tips and Advice on Estate Planning for Blended Families. Trust & Will, 2019. https://trustandwill.com/learn/estate-planning-for-blended-families .
RBC Wealth Management. Estate Planning for Blended Families: Four Tips on Getting It Right. RBC Wealth Management, 2023. https://www.rbcwealthmanagement.com/en-ca/insights/estate-planning-for-blended-families-4-tips-on-getting-it-right .
BMO Private Wealth. 5 Estate Planning Challenges for Blended Families (and How to Solve Them). BMO Private Wealth, 2023. https://privatewealth-insights.bmo.com/en/insights/estate-trust/5-estate-planning-challenges-for-blended-families-and-how-to-solve-them/ .
Engel, Anthony L. Estate Planning for Blended Families. Bessemer Trust, 2023. https://www.bessemertrust.com/insights/a-closer-look/estate-planning-for-blended-families .
What are the implications of the Funding Target Attainment Percentage for FedEx Corporation employees, and how does it impact the security of the pension benefits offered by FedEx Corporation? This question seeks to explore the nuances of the funding target attainment percentage as reported in the annual funding notice, examining how this metric not only reflects the financial health of FedEx Corporation's pension plan but also how it affects employee confidence in future benefit payments and retirement planning.
Funding Target Attainment Percentage: The Funding Target Attainment Percentage for FedEx Corporation indicates the degree to which the pension plan is funded. A percentage of 101.33% for 2022 suggests that the plan has sufficient assets to cover its liabilities, providing security for employees' pension benefits. This high percentage likely increases employee confidence in the stability and reliability of their future pension payouts, essential for long-term retirement planning.
How does the merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan influence the benefits currently available to FedEx Corporation employees? This question aims to delve into the practical changes that may arise due to this merger, assessing whether it aligns with employee expectations regarding their pension benefits and how the transition process is managed by FedEx Corporation.
Merger of Pension Plans: The merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan appears to have been strategically managed to maintain benefit stability. Despite increasing liabilities by 5.3%, the merger was structured to ensure no negative impact on the benefit amounts payable to participants from either plan, preserving the expected pension benefits for all affected FedEx Corporation employees.
In terms of investment strategies, what measures does FedEx Corporation implement to ensure that its pension plan investments align with the long-term liabilities expected to be paid out to retirees? This question encourages an exploration of the investment policies in place, examining the asset allocations and risk management strategies that FedEx Corporation employs to ensure sustainable funding for its pension obligations, which could potentially include detailed analyses of stocks, debts, and alternative investments.
Investment Strategies: FedEx Corporation employs a diversified investment strategy across equities, fixed income, and alternative investments, aiming to meet long-term pension liabilities. This approach, which includes both active management strategies and the limited use of derivatives, is designed to generate returns that exceed market indices, thus ensuring adequate funding of pension obligations.
What options do employees of FedEx Corporation have for accessing their pension plan statements, and how frequently are these statements generated? The focus here is to understand the communication strategies employed by FedEx Corporation regarding pension benefit statements, including technological access points and the importance of these documents for employee financial planning.
Pension Plan Statements: FedEx Corporation provides annual pension plan statements through their Retirement Service Center, available electronically each fall. Employees can access their statements online or request them if notifications are not received, ensuring transparency and aiding in personal financial planning.
How are contributions to the FedEx Corporation Employees’ Pension Plan determined, and what role do excess contributions play in the plan's overall funding strategy? This question aims to educate employees about how the company balances mandatory contribution levels with potential excess contributions, exploring how these factors interact to influence the plan's solvency and employee benefits.
Contributions to the Pension Plan: Contributions to the FedEx Corporation Employees' Pension Plan are calculated to meet at least the minimum legal requirement and potentially include voluntary excess contributions. These excess contributions can help manage the plan's funding level and ensure its solvency, benefiting overall pension security for employees.
What types of benefits are guaranteed under the Pension Benefit Guaranty Corporation (PBGC) for FedEx Corporation employees, and what limitations exist that employees should be aware of? By focusing on the guaranteed benefits, this question prompts a discussion on the security of specific benefits provided by FedEx Corporation and highlights limitations, allowing employees to understand their rights fully.
PBGC Guarantee: The Pension Benefit Guaranty Corporation guarantees certain types of benefits for FedEx Corporation employees, such as pension benefits at normal retirement age and most early retirement benefits. However, there are limitations, such as exclusions for benefits without vested rights and recently increased benefits, which employees should be aware of to fully understand their pension security.
In what ways does the FedEx Corporation plan to adjust its pension funding strategy in light of changing federal laws that impact pension obligations? Employees are encouraged to consider how legislative changes influence corporate policies surrounding retirement benefits and the proactive strategies FedEx Corporation might take to remain compliant while ensuring the security of employee pensions.
Adjustments to Funding Strategy: FedEx Corporation is likely to adjust its pension funding strategy in response to legislative changes affecting pension obligations, such as those introduced by recent acts adjusting how pension liabilities are calculated. This proactive approach aims to ensure compliance with new laws while continuing to secure the financial health of the pension plan.
What are the steps that FedEx Corporation employees must take if they are considering retirement, particularly in how to navigate the pension plan and gain access to their benefits? This question aims to provide clarity on the retirement process, ensuring that employees are equipped with the necessary information regarding required documentation, timelines, and points of contact within FedEx Corporation.
Steps for Retirement Planning: Employees considering retirement should contact the FedEx Retirement Service Center to navigate their pension plan benefits. This process involves understanding necessary documentation, timelines, and available support, facilitating a smooth transition into retirement.
How does FedEx Corporation plan to manage potential funding shortfalls in the pension plan, and what mechanisms are in place for notifying plan participants should such an event occur? Employees would need to understand the proactive measures put in place by FedEx Corporation to address funding-related challenges while also knowing what this means for their benefits.
Managing Funding Shortfalls: In the event of potential funding shortfalls, FedEx Corporation has policies in place to manage such situations, including strategic contributions to mitigate shortfalls. The company maintains transparency with plan participants about funding levels and any significant changes affecting the pension plan.
For those seeking more information about their pensions and retirement options, how can FedEx Corporation employees contact relevant departments, and what resources are available for assistance? This question provides an opportunity for employees to familiarize themselves with contact points such as the FedEx Retirement Service Center, emphasizing the importance of open communication channels for addressing inquiries related to their pensions. Feel free to consult the provided document for more in-depth exploration of these topics.
Contacting for Pension Information: FedEx Corporation employees seeking more information about their pensions or retirement options can contact the FedEx Retirement Service Center. This center provides essential resources and support, ensuring employees have access to all necessary information regarding their retirement planning.
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)