Deciding How to Allocate Assets Among Your Children
If you own anything at all, you may have had thoughts about who should inherit those assets when you die. It is important to recognize that you can divide your estate however you wish even if your children may object. Let’s look at some ways to structure an estate plan that accurately reflects your final wishes and how to communicate those wishes ahead of time.
Divide Your Estate Through the Use of a Trust
Assets in a trust can be distributed in any manner that you would like. Therefore, you can choose to divide your estate equally among your children or choose to leave everything to just one child. In the trust document itself, you can write a paragraph or two explaining why one child got a majority stake in the family business while another got an antique painting or money in a bank account.
Beneficiary Designations Can Be Helpful
A beneficiary designation allows an asset to be passed on to a beneficiary as soon as the current owner passes on. It is important to note that this designation is considered more important that any language contained in a will. Therefore, it is important to update them as life events unfold. In most cases, only the beneficiary knows about the transfer, so it is unlikely that anyone will challenge it.
Have a Conversation With Your Kids Ahead of Time
While you are under no obligation to tell your children why you allocated your assets like you did, it is a good idea to do so. This may help to prevent fights between children or prevent your children from resenting you after you pass. An estate planning attorney in Las Vegas may be able to participate in this conversation or have private conversations with adult children on your behalf.