Some disputes end up in court, especially if an adult child suspects that. But unequal inheritances can lead to sibling fights after the death of one parent. Some disputes end up in court, especially if an adult child suspects that one parent was the target of what lawyers consider an “undue influence” from the brother or sister who benefited the most. Before explaining how to handle unequal inheritance, it will be important for you to understand what inheritance really is.
An inheritance is any asset that you leave to a specific person within your will. These assets can include anything from cars to jewelry, clothing, money, 401k accounts and more. When an inheritance is unequal, this means that the value of the assets left to each individual does not equal the same amount for each person. If you find yourself in this situation, talk to your bank, talk to your banker, and see what the best thing you can do.
Talk to your financial advisor and talk to your estate planning attorney so that when you die, Joey doesn't decide to keep all that money, which is legally all that is. And take a vacation, pay off his debt or give it to his girlfriend, who knows what Joey wants to do. But it doesn't matter because you gave him 100% of that money to the detriment of your other two sons. Wealth taxes can unintentionally create an uneven division of assets.
If inherited assets are taxed at different rates, those who inherit assets with a higher tax rate will get less value from the equity. However, disinheriting a family member or leaving heirs unequal amounts can lead to hurt feelings and family arguments. It is important to consider carefully the correct wording of a will, so that relatives are more likely to understand the reasons for leaving an inheritance that is not equal. If you decide to leave an unequal inheritance for your children, one of the best ways to avoid hurting the feelings and resentment between your children is to have an open and honest conversation with them about why you made your decision.
However, if you can prove that an unequal inheritance was not really the intention of your parents, then you can support your claim. While past contributions to beneficiaries or different valuations of specific assets may change the proportions of the distribution of wealth, many other factors can create an unequal but fair inheritance situation. Whatever the reasons for leaving an unequal inheritance, you can be sure that whoever receives less than others will feel unhappy or even angry about it, especially if you didn't expect it. You have to decide how important that risk is given the temperament of your children, their relationships with each other and whether any risk of leaving an unequal inheritance is worth what you are trying to achieve.
But despite the parents' best intentions, unequal inheritances often lead to bitterness, resentment, and even litigation between siblings who think they were looked down upon in their parents' will. If you are considering leaving an unequal inheritance to your children, there are things you can do to ease, or even avoid, any tension between them that may result. If you fear that your children will not understand or accept your unequal inheritance in your will, there are ways to distribute the property outside of your will. If they understand that an uneven division is what makes your inheritance fair because of the gifts you have already provided during life, then your inheritance will meet your expectations and will not be a surprise.
Read on to find out everything you need to know about unequal inheritance, the reasons behind it, and the best way to handle unequal inheritance. When leaving an unequal inheritance, follow these steps to avoid hurting feelings or potential conflicts between your children. No matter what parents' reasoning for leaving uneven legacies, experts advise them to understand how such a decision can harm the people who matter most to them. Here is a more detailed analysis of the different factors to consider if your estate planning involves an uneven allocation of your assets.