When drafting an estate plan, you have many options to design a plan that works best for your family. Certain beneficiaries may have specific needs, or you may have spoken with them in advance about how to distribute assets.
Often, beneficiaries assume that asset distribution will be equal. However, it’s important to remember that you don’t necessarily have to give everyone an equal share. For instance, if one beneficiary has a greater financial need than another, you can adjust your estate plan to provide them with more assistance. Unequal bequests have become more common in recent years as parents address issues like financial disparity among their adult children.
It can cause conflicts
That said, equal division is sometimes easier because it reduces the potential for conflict.
For example, imagine you have two children who both assume they will receive 50% of your estate. Neither has discussed this with you, but they believe equal distribution is what you’ll do.
If, after your passing, one child receives 75% of the estate and the other receives only 25%, it could lead to an estate dispute. The child who received less might claim their sibling exerted undue influence to force you to change your will.
To avoid this, it’s a good idea to discuss your estate plan with your beneficiaries in advance. By setting appropriate expectations, even if the division is unequal, you can reduce the likelihood of disputes.
Creating your estate plan
This is just one aspect of estate planning that can become complicated. Take the time to carefully explore your legal options and draft a plan that works best for your family.
