Equal inheritances have become less common. According to research, the proportion of parents over 50 who reported treating children unequally in their Wills rose from 16 percent to almost 35 percent between 1995 and 2010.
The News and Record’s recent article, “When Leaving an Unequal Inheritance Makes Sense,” says that leaving unequal inheritances can be risky. A third of Americans say their financial stability depends on receiving an inheritance, and the stakes can be high for siblings — and their parents.
It may be easier to divide your assets evenly among your beneficiaries. Still, you might feel strongly about helping an adult child who is struggling or want to leave less to a child you have already financially supported. One of the most common reasons people leave unequal inheritances is to address uncompensated caregiving from an adult child. A 2018 Merrill Lynch and Age Wave study found that two-thirds of the respondents said that children who have provided care to them in their later years should receive a larger inheritance than those who did not.
When a child has had to compromise their lifestyle to care for a parent — such as giving up a job or working part-time instead of full-time — the parent understands the sacrifice and often wants to favor that child with a greater inheritance. The Merrill Lynch and Age Wave study says many parents also feel that children who need the money most should get more. That may mean leaving less to relatively well-off kids.
While unequal inheritances are frequently designed to reward children for their help, or to give a greater amount to a disabled child, or to ensure kids are left in the best financial condition possible, hard feelings can flare up if one sibling feels that another sibling did not “earn” the extra inheritance. Here are a few things that may help reduce any friction:
We, at Curran Estate & Elder Law in Berks County, have a sincere and caring approach to the family unit and will most certainly meet your wishes and be there for your family after you no longer can be.
Reference: News and Record (April 13, 2023) “When Leaving an Unequal Inheritance Makes Sense”
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