Minimize Issues When Creating an Estate Plan to Benefit Your Kids.As you begin the process of planning your estate, it is important to recognize the types of issues that may arise. Many people want their children to be the primary beneficiaries of their assets. Unfortunately, conflicts can grow among siblings under certain circumstances. Taking these potential issues into consideration when creating your estate plan can help you avoid them.
4 Types of Issues That Can Arise Between Siblings Due to an Estate Plan
What types of issues could arise among children after you die? The following are four examples:
- If one child feels he’s received less than what’s been given to a sibling. Even when you divide your assets equally among your children, issues can arise. For example, one child may feel a sibling has received more gifts while you were alive—perhaps you gave one child money to start a business during your lifetime. It is important to share these facts with your attorney in order to develop a strategy that minimizes disputes after you die.
- If one child is financially more stable than another, you may wish to leave more assets to the child with fewer assets. However, this can lead to conflict between the children, and an attorney can help you create an estate plan that minimizes this type of conflict.
- If one child is named as trustee of a trust, and the other is not. This can lead to hurt feelings that he or she was not selected to fill this role. Issues like this one can arise among children that have nothing to do with the division of assets. Planning accordingly can potentially avoid a dispute later.
- If children already have a difficult relationship, naming one child to oversee the administration of a trust where the assets are not going to be paid out immediately can create potential conflicts. In these cases, you may wish to consider naming an independent third party to serve in this role.
Minimize Issues When Creating an Estate Plan to Benefit Your Kids. When planning your estate, it is crucial to seek guidance from a knowledgeable professional. We encourage you to contact us today at (714) 282-7488 for more information.