You certainly have the option to divide your assets equally when making an estate plan. Many parents do. Their goal is to split things evenly among all of their children, and they may also make accommodations for extended family members, such as grandchildren.
However, do not assume that you have to divide your estate equally. You have the choice to use unequal bequests if you prefer. This approach has become more popular in the United States in recent years as people explore more creative ways to divide their assets.
Why would unequal bequests help?
Unequal bequests can help you address specific needs within your family. For instance, imagine you have two children. One has a high-paying job and doesn’t need financial assistance, while the other has a lower-paying job or struggles to maintain employment. You might choose to leave more of your assets to the child who needs financial support, helping them achieve long-term stability. At the same time, you can leave less to the child with a higher income, as they don’t have as much need for your assets.
Are there any downsides?
There can be downsides to unequal bequests, with the most common being the increased likelihood of an estate dispute. Even if one child doesn’t need as much financial help, they may feel frustrated or resentful if they receive less than their sibling. They might think they’re being punished for their success or even claim that their sibling exerted undue influence to alter the estate plan.
If you decide to use unequal bequests, it’s often a good idea to talk to your beneficiaries in advance. Explaining your reasoning can help manage expectations and reduce potential conflicts.
No matter how you divide your assets, estate planning can be complex and will have a significant impact on your family. Be sure to understand your legal options fully before making decisions.