How to Allocate Assets Among Your Dependents
Deciding how to allocate assets among your children or other dependents may be among the toughest estate planning decisions a parent will make. While most parents choose to divide their assets equally among their dependents, you could choose to leave everything to a single child or leave nothing to your children at all.
Allocate Assets Based on Need
There’s a good chance that not every child is going to be interested in running the family business or inheriting the family home. Therefore, you may hand the business to the child most capable of running it or hand the home to the child most capable of maintaining it. A child who makes less than his or her siblings may need more money to survive, which means that he or she could benefit most from a lump sum of cash when you pass.
You Might Be Able to Leave a Child Out
Let’s say that you are estranged from a son or daughter at the time of your death. It may be possible to cut that person out of your will or trust, and that child may have little or no recourse to challenge how you decided to allocate assets between your heirs. A trust administration lawyer in Las Vegas may be able to explain the rules of disinheriting a child in Nevada.
Take Time to Discuss Your Plan
It is generally a good idea to discuss your estate plan with your children prior to passing on. Even if your children don’t agree with the plan, understanding your intentions may minimize the chances of a legal challenge or other family drama after your death. Doing so also allows you to tell family members where important documents are so that they can be used to settle an estate in a timely manner.