Brockstedt Mandalas Federico Partner Michele L. Muldoon was quoted in MarketWatch discussing how families can thoughtfully plan for the division of an inheritance, including circumstances in which an equal split may not necessarily be the fairest or most appropriate approach.
The piece covers guidance from financial advisers including the need for explicit, specific instructions in in the written documents themselves, proactively explaining an uneven plan to children in person rather than leaving it to be discovered later, and accounting for the very different tax treatment of assets that carry the same dollar value.
Michele emphasizes that whatever approach parents choose, clarity and communication are critical. An estate plan should clearly reflect the parents’ intentions, and families can benefit from discussing an uneven distribution openly rather than leaving children to discover and interpret those decisions after a parent’s death.
She also notes that there is more to an inheritance than the dollar amount. Different assets can carry very different tax consequences, meaning two children who receive assets with the same stated value may not ultimately receive the same economic benefit.
Michele’s practice focuses on Estates & Trusts, Elder Law, and Estate Planning.
Read the full article here: https://www.marketwatch.com/picks/1-in-3-parents-plan-to-divide-the-inheritance-unequally-among-their-kids-and-frankly-that-could-be-a-smart-way-to-do-it-pros-say-e4db4ab5