Beneficiaries, such as adult children, often assume that their parents are going to split up assets evenly. If a child has two siblings and knows that their parents have roughly three million dollars in cash assets, they may assume that each one of them is going to inherit one million dollars.
But that does not have to be the case. As you draft your estate plan, you can use your discretion to split up your assets any way you choose. This includes using unequal bequests. For instance, if one child is already financially secure, you could leave them less money than their siblings. The estate plan does not need to be equal, and your assets do not have to be split up evenly.
Can this cause problems?
Yes. Although it is fully legal to split up assets any way you wish, it is also important to remember that this can cause significant problems for your family. Specifically, unequal bequests will often trigger disputes, arguments or conflicts between beneficiaries. In some cases, they may even allege something like undue influence and try to challenge the estate plan.
To avoid these problematic issues, it is often wise to talk to your beneficiaries in advance. Tell them that assets are not going to be split up evenly so that they have the right expectations. Answer their questions and explain your reasoning. The more information you can give them up front, the lower the odds that there will be an estate dispute after you pass away.
Drafting your estate plan
Determining how to split up your assets can be complicated. Be sure you understand all of your legal options when making an estate plan.