It is very common for people to want to set up their estate plan in a way that will make sure each of their children gets to inherit an equal share. One thing that might complicate things are taxes and that the fact that people in different income tax brackets pay different rates. Clients need to be careful about taking tax policies into consideration when deciding on how to distribute assets. They need to decide how much each beneficiary is going to receive and then make “tax smart” allocations of assets. It is also important to explain the reason for any unequal distributions to potential heirs to avoid any future family conflict. Preserving family harmony is something that most clients will want to do, which is why careful estate planning is essential.
See Brian Vnak, Why your siblings may be inheriting more than you, Market Watch, October 25, 2015.
