Are you thinking of the best way to distribute your income to your heirs? You know you don’t have to distribute it equally, right? It’s OK to have unequal distributions in your estate planning.
Why would you use an unequal distribution?
You know your children or other heirs. Your estate planning should be based on your wishes for your heirs, which can take into consideration many factor, including their choices, their needs, the help you have given them, their future and your concerns.
Let’s look at some factors to consider:
- What is their current financial situation?
- How do they manage money?
- Do they have any personal troubles that could be made worse through direct inheritance?
- Should the funds be distributed in a way other than direct cash, such as a trust with certain stipulations related to age, employment, or any other specifics?
- Are there medical needs or chronic health problems to take into consideration?
- Is there a proven track record of bad decisions that can include failed marriages, finances or habits?
- Does your estate plan need to stipulate any prenuptial agreements you would require?
- Have you helped any of your heirs previously?
- Are there any estrangements affecting your decisions?
Do any answers to these questions lead you to consider changing how you divide your estate? We would be happy to help you sort through the logistics of these decisions, as well as help you best explain to your heirs in person or through letters of your intent and reasoning.