If you are writing an estate plan and you ask your beneficiaries what they expect, they may tell you that they assume the plan will be equal. For example, if you have two adult children, they may have long assumed that your estate would simply be split evenly between the two of them.
But do you actually have to do this? You do not. Your estate plan does not have to be equal, and there are many reasons it may not be divided as evenly as your family assumes.
For instance, one of your children may have medical issues that prevent them from working and require significant financial assistance. The other child may be financially successful and already have more assets than you do. In that situation, you may determine that it is fair to divide assets unequally and leave more to the child with the greater need.
Estate disputes can occur
One potential downside of using unequal bequests is that they can sometimes lead to estate disputes. The sibling who receives less may feel resentful or believe that the other sibling exercised undue influence to change how assets were divided.
For this reason, if you plan to leave unequal bequests, it can be helpful to speak with beneficiaries in advance and explain your reasoning. This may help prevent disputes before they begin.
Creating your plan
At the start of the new year, you may be thinking about creating an estate plan. If so, it can be helpful to work with an experienced legal team while exploring your options and drafting the necessary documents.
