Estate planning as a parent can provide peace of mind when children are young. It can be a source of joy and comfort during a parent’s golden years. They may imagine how their children make use of their legacy and may relish the idea of their resources enhancing their children’s quality of life.
Frequently, parents with multiple children simplify estate planning by leaving each child an equal inheritance. However, some parents are much more specific and nuanced regarding what they provide for their children when they pass.
Contrary to what many people assume, equal inheritances are not always the best option.
Did one child require more support?
In a family with three adult children, the parents may have made far larger financial contributions for the support of one child as opposed to the other two. Maybe they had a brush with the law in their 20s or a messy divorce. In such scenarios, adjusting the inheritance to reflect prior financial contributions to one child could be the most reasonable solution available.
Other times, differences in the current relationships that the parents have with their children could influence how they allocate their property. They may not want to disinherit an estranged adult child, but they may choose to reduce what they inherit.
Provided that parents take the right steps when developing an estate plan that provides an unequal inheritance, they can theoretically set whatever terms they believe are fair and reasonable. Carefully evaluating resources and family circumstances with a skilled legal team can help parents leave fair estate plans. Appropriate planning and discussions about plans can limit the likelihood of an estate plan triggering conflict after a parent dies.