The article presents a novel strain-based finite element family for the analysis of material softening of planar frame structures. In our case, the softening zone is described by a discrete crack, which is considered as an ‘excluded’ finite element point, i.e., the deformation quantities in the crack are considered separately from the deformation quantities of the element. They are connected to the element only through kinematic quantities, used to describe the crack opening. The criterion for crack initiation is defined as the limit axial-bending resistance of the cross-section. The advantage of the presented model is that it is not necessary to define cracks or softening zones in advance and that the solution is mesh-independent in the sense that no further densification of the mesh is needed purely on account of capturing material softening. The accuracy and efficiency of the presented finite element family is illustrated by the example of a clamped–simply supported concrete beam and a portal concrete frame. The examples demonstrate that even with a minimum number of finite elements of suitable accuracy, sufficiently accurate results are obtained for normal engineering practice.