When you are engaged in the process of inheritance planning you are going to be faced with the prospect of making some important and potentially sensitive decisions. Exactly how much you are going to give to each person on your inheritance list is one of them.
It can seem as though it is only fair to give each of your children equal inheritances. Many people go this route regardless of the relative financial situation that each respective child may be in, and there is certainly nothing inherently wrong with this course of action.
However, what if one of your children has been very successful financially while one or more others have struggled? Should the wealthy child and the struggling child or children get equal inheritances?
The way that you answer this question is up to you, but if you do decide to give unequal inheritances for this reason or any other you may want to explain your choices to your children in advance.
Honest communication can go a long way toward circumventing challenges to your estate before they happen. What if the child who received less simply could not believe that you would have planned your estate in this manner? He or she could challenge the last will, contending that you must have been under undue influence or incapable of making sound decisions.
In addition to the above there is the simple matter of damaged feelings. If you logically and sincerely explain your reasoning it is likely that your children will accept your decisions and refrain from acrimonious interactions after your passing.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
- Who Should Manage Your Child’s Inheritance? - September 29, 2022
- How to Find the Right Caregiver for a Parent - September 27, 2022
- What You Need to Know about Elder Financial Exploitation - September 22, 2022
