Inheritance Woes

Many estates attorneys have witnessed cases of sibling rivalry that have shocked their conscience.  Not only do jealous siblings spark inheritance wars, but issues involving second marriages, glitches in the will, poorly worded phrases and assumptions are also infamous for causing heartache after the estate is settled.  “Sometimes parents themselves set the needs of destruction of their own family by not doing proper planning.  Some parents keep their heads in the sand.” 

Many parents believe that dividing the inheritance equally is the best thing to do, “But equality isn’t always fairness and doesn’t mean the kids won’t fight.”  Parents should do what they want with their money, but they should consider the consequences. 

In drawing up a will, it is suggested to include a “family law clause.”  This protects the income generated from an inheritance should the child later separate or divorce.  If the inheritance has been kept in the child’s name, then it is safe, but the money earned from it is not.  “This can cause so much grief, accounting for all the money made from the inheritance and giving half to the spouse.  The family law clause protects against that.” 

A trust is another mechanism to control money.  If a child has drug or alcohol problems, parents might leave the inheritance in a trust that pays an income through the child’s life rather than having them get one lump sum.  “If parents didn’t like their son-in-law, they could set up a trust for their daughter’s inheritance specifying that when she died, the money goes to their grandchildren.” 

See Nancy J. White, Parents Should Ask: ‘Will My Children Be Talking After I Die?’ The Star, Jan 2, 2015.