Planning for the financial distribution of your assets after you pass can be unpleasant for many parents. Children simply are not always in the same place in life and have different needs. For this reason, parents in Indiana and around the country must rely on good estate planning to make an unequal distribution of assets as fair as possible.
How to determine what is most fair
The easiest estate planning regarding the distribution of assets to surviving children would be to divide everything equally. However, this could end up hurting one child while helping another. Therefore, it is necessary to evaluate each child’s financial standing and ability to manage money when creating your will. If your estate includes a business, you will need to appraise the company’s value and decide which of the children could best manage it. Your remaining children could be given cash or other assets to match the value of the business if possible.
Communicate your wishes
If you decide not to divide assets equally, it is important to explain your reasoning to your children so they understand your decision. However, you should be prepared that no matter how loving your decision is, it could create problems with children who disagree with your decision. While it could be a little scary to have this conversation with your children, it is better to try and help them understand your feelings instead of them trying to figure out your intentions after you have passed.
Be clear with your intentions
Your will should be very clear as to your wishes for the division of assets. Any poorly communicated instructions could cause confusion and friction between your children. Your loss will be difficult enough to deal with, and you do not want to create a situation that could strain the relationship between your children.
Children often view inheritance as a measure of love from a parent to the child. The more a child receives, the more they are loved. With careful estate planning, you can create plans for a prosperous life for your children while communicating your love for them.