When planning their estate, parents often grapple with the complexities of dividing their assets equally among their children. While it may appear straightforward, equitable distribution requires careful consideration. This blog explores key factors to keep in mind when contemplating your options and highlights the importance of consulting with an experienced Washtenaw County Estate Planning Attorney for guidance during this intricate process.
Can I Divide Assets Evenly Among My Children?
When your children are minors, estate planning is relatively straightforward. Typically, you will establish a trust to manage their assets during their minority, with any remaining assets being divided equally when they reach adulthood. However, estate planning for adult children can be more complex, and you may have reasons to reconsider an equal division of your assets. While you naturally want to treat your children fairly, certain circumstances may warrant a different approach.
A Will or Trust offers a structured and legally sound method to ensure the equitable distribution of your assets among your children after your passing. This can be accomplished through various strategies, tailored to your specific family circumstances and desires. First, you can specify that all assets within your estate are divided equally, guaranteeing that each child receives an identical portion of your estate. This can minimize potential conflict among heirs.
In addition, you can leave specific assets to certain children. However, to maintain equity, you should provide monetary compensation to the other children. For instance, if you bequeath a family business to one child, you may leave financial assets or property that is equivalent value to your other children to ensure fairness. You can also specify that certain assets are sold and the proceeds be divided equally among your children. To determine the best course of action, you should consult with a seasoned attorney.
What Should I Do If I Have Concerns My Children Will Mishandle a Lump Sum Inheritance?
If you harbor any concerns about any of your children mishandling a lump sum inheritance, establishing a trust can provide a solution. This approach allows you to retain a degree of control even after your passing. By appointing a trustee, you can ensure that your assets are managed and distributed according to your wishes. One of the key benefits of using a trust is the ability to structure distributions over a set period. Instead of your children receiving a large windfall, the trust can be designed to provide smaller distributions, preventing them from spending the inheritance too quickly or making poor financial decisions.
Family dynamics and financial circumstances can shift unexpectedly. As such, it’s important to regularly update and review your estate plan to ensure that it reflects your wishes. If you are a parent who is struggling with how to distribute your assets among your adult children, it’s in your best interest to contact an experienced attorney from Collis, Griffor, & Hendra, who can help ensure your estate plan safeguard your legacy and provides for your children’s well-being after your passing. Connect with our firm today to learn how we can help you create a comprehensive estate plan in Michigan.
