When it comes to estate planning, one of the most difficult decisions parents of multiple children may face is how to divide their assets among their kids. While many opt to leave equal shares to each child, there are situations where parents may benefit from considering the approach of constructing an uneven inheritance.
Whether such a decision is based on financial need, personal circumstances or other reasons, it’s important for parents to carefully weigh the pros and cons of leaving an unequal distribution of assets to their children before committing to an approach. Otherwise, what starts as a well-intentioned decision can lead to unintended negative consequences. If you are the parent of multiple children, consider the following as you engage in estate planning.
Potential pros of leaving an uneven inheritance
One of the most common reasons for leaving an uneven inheritance is to provide more support to a child in greater financial need. For example, if one child has a disability, ongoing medical expenses or is struggling financially, parents may feel it’s fair to allocate more assets to them. This can provide security and stability to whichever child needs this support most.
Somewhat similarly, if one child has already received substantial financial assistance from their parents—such as help with buying a house or paying for education—parents may opt to leave a smaller inheritance to that child to balance out previous gifts. This can create a more equitable overall distribution of parental support over time.
Potential cons of leaving an uneven inheritance
One of the biggest risks of leaving an uneven inheritance is the potential for family conflict. Children who receive less may feel hurt, resentful or believe they are being treated unfairly. This can lead to long-term family estrangement, legal disputes and/or emotional stress. Clear communication and transparency can help mitigate these risks, but feelings of unfairness may persist regardless.
Additionally, uneven inheritances can complicate the estate administration process, particularly if the children dispute the distribution you’ve set up. Disputes can lead to delays in probate, increased legal fees and potentially unnecessary stress for surviving family members.
Ultimately, you have every right to do as you please with what you own. Thinking through your approach to estate planning will help you to make informed decisions accordingly.