In planning their estate, many people struggle with decisions of “who gets what”.
One important thing to remember is… It is Your Money! You are not required to justify how you determined to divide your assets.
However, is it better to talk to your heirs about what to expect? Probably, unless there are overwhelming considerations against such discussions.
Alternatively- you can leave a document clarifying why you made certain beneficiary decisions.
One general rule of thumb - try not to set up your heirs with expectations. Situations change and they can change dramatically.
For the most part, any financial inheritance should best be viewed as a ‘windfall’, not something ‘guaranteed’ and to be relied upon in the future.
Also, it is best to avoid making decisions emotionally or after an emotion-charged event. We all have heard of cases where parents are constantly making and revising wills according to which child/beneficiary is the ‘flavor of the month’.
Try not to react to perceived ‘slights’, from a child or their spouse or to a specific “bad behavior.” Circumstances and people can change.
Remember - Your needy or irresponsible child might hit the Lottery and have all their dreams fulfilled; therefore, basing inheritance on the fact that one child ‘needs’ more than another might be ill- advised over the long term.
(An exception to this could be a special needs child.)
Finally, if you have ‘rewarded’ one child with loans/funds for a car, house, college tuition or a business start-up, then that should be taken into consideration.
Equitable does not necessarily mean equal in those circumstances.
To avoid a ‘legacy of discontent’, consult with a professional - someone who can ask the right questions and guide you in making decisions.
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