{"id":8047,"date":"2017-07-14T07:43:10","date_gmt":"2017-07-14T14:43:10","guid":{"rendered":"https:\/\/ameriestate.com\/?p=8047"},"modified":"2018-07-03T10:25:46","modified_gmt":"2018-07-03T17:25:46","slug":"distribute-estate-equally-among-children-unequal-circumstances","status":"publish","type":"post","link":"https:\/\/ameriestate.com\/estate-planning\/distribute-estate-equally-among-children-unequal-circumstances\/","title":{"rendered":"Should You Distribute Your Estate Equally Among Children In Unequal Circumstances?"},"content":{"rendered":"

\"\"Sample Case Study:<\/strong><\/h3>\n
    \n
  1. Client in their mid 80\u2019s with an estate of approximately $9,000,000.<\/li>\n
  2. Children are three daughters in their early 60\u2019s.<\/li>\n
  3. Two of the three daughters have received substantial help (+\/- $500,000 from the parents over the past 30 years).<\/li>\n
  4. The third daughter has received little or no help as she has been financially successful and responsible.<\/li>\n
  5. The two daughters that received substantial financial support have less than $20,000 net worth.<\/li>\n
  6. The financially responsible daughter has a net worth of about $1,000,000.<\/li>\n<\/ol>\n

    Estate Distribution Options: <\/strong><\/p>\n

      \n
    1. Give each girl $3,000,000.<\/li>\n
    2. Deduct the funds already given to the less responsible girls from their portion of the $3,000,000 and give the balance to the responsible daughter.<\/li>\n
    3. Put the two girls\u2019 funds in a CRT over their lifetime.<\/li>\n
    4. Give the needy girls 40% each and the one that does not need it 20%.<\/li>\n<\/ol>\n

      Additional Estate Distribution Options and Considerations:<\/strong><\/p>\n

        \n
      1. Give to each daughter according to their needs.<\/li>\n
      2. Did the better-off child get that way through sacrifice while the others squandered? If so, split it equally.<\/li>\n
      3. Don\u2019t assume the better-off child won\u2019t have some financial setback or costly event in their life, so as to make you think they “don\u2019t really need any inheritance from you.”<\/li>\n
      4. Consider an equal split but for the better-off child leave a portion of their share directly to their children. The reverse may also work if the less well-off daughters squandered their money or were irresponsible, and then maybe part of their share should go to their kids.<\/li>\n
      5. Determine your own split and leave the two girls with some cash and with their balance create some sort of annuity out of the inheritance to provide a lifetime supplement, especially if any of the kids are not responsible with money.<\/li>\n
      6. It is not uncommon to reduce the share of a child to whom you have given substantial financial support during their lifetime.<\/li>\n
      7. Choose not to play favorites just because of the station in life your children have attained.<\/li>\n
      8. Split it in thirds, reduce the amount given over grantor(s) lifetime and give that to charity.<\/li>\n<\/ol>\n

        Also, consider some of the dangers listed below of passing on wealth to your children.<\/p>\n

        Dangers, Considerations and Recommendations of Passing Wealth to Children:<\/strong><\/p>\n

        By passing on wealth to your children, they:<\/p>\n