It is estimated that baby boomer parents in the United States will transfer more than $30 trillion to their children over the next 30 to 40 years. While the economy will have a lot to do with whether that number rises or falls, distributing it, especially if there are multiple children poised to be beneficiaries, may be difficult.
If you want to ease the headaches about what to do with what you are leaving to your beneficiaries, the following tips can help.
Have open communication Most children have an idea of what their parents are worth, and how much they stand to earn when their parents pass away. However, this perception may be considerably off. So having a dialogue about what a childs inheritance may be could help in easing your concerns about how to distribute it.
Be as equal as you can Simply put, it is less likely that children will fight and hold things against each other if they are going to get exactly the same amount in their inheritance. Also, no one will have hard feelings since they are each getting the same thing, regardless of the amount.
Use a trust Distributing a childs inheritance ostensibly takes the pressure off of a parent. The trustee would be responsible for monitoring the funds and ensuring that distributions are made according to the parents wishes. This is especially important if the child inheriting the money is under 18.
If you have questions about how to structure your estate plan, an experienced attorney can help.