Parents usually want to leave their children equal shares of their estate, but equal isn’t always fair. If you plan to provide more (or less) for one child in your estate plan, preparation is important.
It is natural for parents to want to treat their children equally in their estate plan, but there are some circumstances in which a parent might want to leave children unequal shares. If one child is providing all the caregiving, the parent might want to reward that child. If one child is substantially better off than another child, then the parent might want to provide more for the child who has a greater need for the funds.
Several other factors that can influence how much a parent chooses to give each child, such as: is if one child has special needs; if there is a family business that only one child wants to run; or , if the parents have already provided more for one child during their lifetime, maybe by paying for graduate school or helping them buy a house.
Whatever the reason for leaving your children unequal shares, the important thing is to discuss your reasoning with the children. Sit down with them and explain your decision-making process at some point prior to your death. If you feel like the conversation could be difficult and contentious, you could hire a mediator to help facilitate the discussion.
Your children may be understanding of your decision, but if you are worried about one child challenging your will after you die, you may want to take additional steps:
Draft your will and estate plan with the assistance of an attorney and make sure it is properly executed. To avoid accusations of undue influence, do not involve any of your children in the process.
Include a no-contest clause (also called an "in terrorem clause") in your will. A no-contest clause provides that if an heir challenges the will and loses, then he or she will get nothing. The key with this clause it that you must leave the heir enough so that a challenge is not worth the risk of losing the inheritance.
To understand the tax consequences of leaving unequal share to your children and to properly plan, contact Jayde Law PLLC for a consultation.
Attorney Advertisement. The information contained on this website is not, nor is it intended to constitute, legal advise. The transmission and receipt of information contained on this website, in whole or in part, does not constitute or create an attorney-client relationship between Jayde Law PLLC and any recipient. You should not send us any confidential information in response to this website. Such responses will not create an attorney-client relationship, and any information disclosed will not be privileged or confidential unless we have established an attorney-client relationship and executed a written engagement agreement.