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Sibling relationships are complex and no two families are exactly alike. Dividing inherited property between siblings can be complicated because there is no right or wrong way to divide property.
Just because there is no right or wrong way to divide property between siblings does not mean that you shouldn’t engage in estate planning. Estate planning is the process of arranging for the management of your estate and the disposal of your property after you die.
If you have children, you are probably going to have to decide whether you would like them to receive your property and, if so, how you would like that property to be divided. If you have been wondering about dividing property between siblings then this article is for you. Here, we discuss how to divide inherited property between siblings.
What your children are entitled to after you die depends on whether you die with a will or without a will. If you die with a will, you are said to have died testate. If you die without a will, you are said to have died intestate .
A will is a legal document that you use to say what you want to happen to your property when you die. If you write a will, you tend to have a great deal of discretion when deciding who you want to get what. This means that if you have a will, inherited property does not have to split evenly between siblings.
If you are taking proactive steps towards estate planning this article is for you. Below we will discuss what you should consider before dividing inherited property between siblings and how to divide inherited property between children in your own estate plan.
If you die without a will then the laws of the state where you resided determine what happens to your property. These laws vary from state to state. However, they generally divide your property equally among those with the closest relationship to you. If you have a spouse or minor children, the law may provide additional protections for what they receive.
If you have questions about what property your children may or may not inherit after you die, speak to an estate planning attorney licensed to practice law in your state. They can answer your questions and help you draft a will and other legal documents if necessary.
When you are making the decision regarding how you want to divide your property, remember that it is ultimately up to you. As long as there are no laws against what you want to do, you can pretty much do what you want to do with your own property.
If you decide that you want to divide inherited property between your children, then you may want to consider some very real factors before deciding how you are going to make the division.
These factors are the same whether you are going to do an equal inheritance or an unequal inheritance . Keep in mind that the factors discussed below are not the only factors that you may want to consider. You may have others that also influence your decision.
As you age, you may find that your needs change. As your needs change, one child or some children may end up providing more care for you than others. This may be a factor that you consider when dividing inherited property.
All children have different needs. If one child has special needs or a disability, this may be a factor that you consider when dividing inherited property. If your other children can live independently without assistance, then you may decide to provide your child that has special needs with more of an inheritance.
Another factor that parents may consider when dividing inherited property is addiction. If a child suffers from an addiction that impacts their financial choices or that an inheritance may worsen, then a parent may leave them less (or choose to leave them money in a trust).
Some people are more financially literate than others. If a child is financially irresponsible, then a parent may choose to leave them less money to squander. Alternatively, they may leave their child money in a trust.
Some people leave unequal inheritances to their children based on whether or not they have dependents. This decision can be based on financial and/or emotional considerations.
Families come in all shapes and sizes. Variations among family dynamics can influence how someone wants their property to be inherited.
When making decisions about inheritances, some parents take into account the financial needs of their children. If one child makes more money than the others or has more financial resources, then they may decide to leave that child with less.
The above list of factors is not exhaustive. It is simply a starting point of things to consider if you are going to leave your children an inheritance. Your list of factors may be shaped or expanded upon based on your own personal beliefs.
Making your own estate plan is an important part of end-of-life planning. If you have children and you are going to include them in your estate plan then you are going to have to decide how to divide inherited property between them. Cake is here to help you with that process. Below we provide the steps on how to divide inherited property between children in your own estate plan.
The first step you should take when you decide to divide inherited property between children in your estate plan is to take some time to think about what property you have and how you want to divide the property. When you are thinking about how you want to divide inherited property you may consider the above factors when making your decision.
If a person is going to divide their property equally then sometimes they choose to provide basic instructions in their estate plan, like I leave all my property to my children to split equally. This can be a simple solution but it can bring with it its own problems.
For example, if your property includes a house or other items of significance, then the children will have to agree on how to dispose of the property. Even if your children get along, they may struggle with this decision. Especially if one of the children wants to keep the property and others want to sell the property.
Sometimes a person chooses to divide inherited property equally by specifying who is to receive what property. For example, if a person has a house and a savings account that are of roughly equal value, the person may leave one child the house and the other child the savings account. This type of bequest comes with advantages and disadvantages.
The advantages are that each child has a specific gift, so they don’t have to agree on as much. The disadvantages are that it is really difficult to know that the gifts are equal. Additionally, this type of division may bring up a range of emotions, especially if both children had an emotional attachment to the house.
When you are estate planning, you do not actually have to discuss your plans with anyone. However, having these types of conversations can sometimes be helpful. If you are going to leave a large gift to one or all of your children, you may want to talk to them about it beforehand.
Large gifts can have a number of financial consequences that your children may or may not want to take on. Additionally, you may find that your child is okay with receiving less of an inheritance. In some instances, having a discussion can help avoid conflict with siblings after you are gone because they may better understand your decision.
When you are estate planning, it can be helpful to talk to a professional like an estate planning attorney or a financial advisor. These types of people can help you make the best decision to meet your needs. They can advise you regarding your options, like deciding between a will or a trust or both. An estate planning attorney can also help you execute the necessary legal documents.
Once you have decided how you want to divide inherited property between children in your estate plan, it is time to execute the necessary legal documents. In most estate plans, the necessary legal documents include a will. Your estate plan may include other legal documents such as a trust or documents so that property transfers automatically at your death and can avoid probate.
Comprehensive estate planning can give you peace of mind at any stage in your life. It ensures that your wishes are known and are enforced after you die. Even if your next of kin does not agree with your wishes, they still have to follow them if they are properly executed in the correct legal documents.
Losing a parent can be difficult. In addition to dealing with a range of emotions, families must also deal with the very real task of dividing inherited property. If you have inherited property with your siblings after a parent dies, then you may be wondering what you should do next. Here, we discuss how to divide inherited property between siblings after a parent dies.
If you and your siblings have inherited property after a parent dies, you should have an open discussion about how you are going to proceed. This is an important step so you and your siblings can understand what you may and may not want to do with the property. If you and your siblings are in agreement, then it is going to be a much easier process.
If you and your siblings have a dispute, you will have to figure out how to amicably resolve the matter. Depending on the extent of the disagreement, you may find it helpful to bring in a third party (such as a mediator) to resolve conflicts.
Even if you are in agreement, you may still find it helpful to talk to a finance professional or other professional like an appraiser or an attorney. With large inheritances, especially those involving real estate, it can be beneficial to get professional advice before making any decisions.
Once you and your siblings have decided how you want to divide inherited property, you should put your agreement in writing. This does two things. First, it ensures that everybody is on the same page.
Talking about what you want to do and putting that plan into writing helps to clarify who is going to get what and how that is going to occur. Second, it can act as evidence if any of the siblings act contrary to the agreement.
After you and your siblings have come to an agreement regarding inherited property, the next step is following through on that agreement. Keep in mind that this step may not happen immediately.
The probate process is the court supervised process of administering a person’s estate after they die. During probate, there are a number of things that must be done, like authenticating a will and paying creditors, before the estate property can be distributed.
It can be difficult to know what to do when someone dies . In addition to handling the very practical tasks of planning a funeral or memorial and filing for probate, families are also in mourning.
The best way to ease your family’s burden is through comprehensive estate planning. The best time to start estate planning is today. You are never too young (as long as you are over 18) or too old to come up with a comprehensive estate plan.
