Fairness in estate distribution is a constant bugbear for any planner particularly when the children of the testator have unequal incomes. However, there are some ways to alleviate this issue by the use of tactics such as giving the better funded child more say in estate management while still providing for the offspring that need additional assistance. A generation skipping transfer is another promising solution by providing for grandchildren to ease the burden on the parents while also gaining special tax treatment. Ultimately there is no single solution to this dilemma but forward thinking can help prevent future challenges to the estate and many hurt feelings.
See Gail E. Cohen, That’s Not Fair!, Wealth Management, Mar. 31, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
