In the Kiplinger Morning Consult survey, 73% of parents said they intend to leave the same amount to each of their kids, but just 50% of adult children preferred that approach. In fact, one-third of adult children expect an inheritance to create conflict with their siblings. Those siblings believe Mom and Dad should base inheritance decisions on:
- each child’s financial situation and need
- how much financial help parents have given each child in the past
- how much each child assisted the parents during the parents’ lifetimes
“There’s no wrong or right decision on splitting assets…parents are entitled to pass down their wealth however they see fit,” Diane Harris writes in Kiplinger Finance. What’s imperative is that you inform your children of your decision and explain your reasoning.”
At Geyer Legal, we understand that estate planning is more a matter of thinking through decisions than of preparing documents. When we talk to clients about selecting “Power of Attorney” agents to take care of their affairs when they are not able to do so themselves, we explain that it’s not about birth order, but about what suits the situation.
When it comes to planning unequal inheritances, there are two aspects of the matter that, as Indiana estate planning lawyers, we must consider:
- The legal aspect – Whenever there is a very uneven distribution of assets among heirs, state law carries a presumption of the exercise of undue influence,as a 2014 article in the Indiana Lawyer pointed out. Whenever it appears that a dispute among rightful heirs might result in litigation, we attorneys have a duty to ensure that there had not been any undue influence over the estate owner.
- The “human” aspect – Using the insights our attorneys have gained from decades of helping Indiana families deal with those later-in-life decisions, we provide personalized counsel, helping arrange (and where requested, moderate) family conferences at which parents openly share the values and assumptions – along with the issues – that have gone into their estate planning choices.
– by Ronnie of the Geyer Legal blog team
