When it comes to creating a will, you must designate beneficiaries, and you must also designate which beneficiaries will receive which assets, once you pass. If you have more than one child, you may be contemplating how you will ever distribute all of your assets in a fair way. Here are three tips to help you do so.
Tip #1: Take into Consideration Their Income and Debt
Fully assess each child's current financial state. Do you have one child that has just graduated college, manages a large amount of student debt, and is entering the workforce? This child will likely need more money than a child in a CEO position with significant income and established financial stability. Do you have a child that is about to graduate high school and go to college? If so, this child could use the additional money to fund their education.
Tip #2: Take a Look at Their Existing Assets and Life Events
Determine what each child currently has. If one child has a house with a fully paid mortgage, it may be fair to give a larger inheritance to another child who is balancing a mortgage or trying to buy a house. If one child is married with no children and has a spouse with a significant income, another child who is a single parent or is not married may be entitled to more financial support. If you have an older child that does not require support, it may make more sense to establish a payout of inheritance for their children instead, or this may be something you want to do for all of your grandchildren.
Tip #3: Take into Account Special Needs and Responsibilities
Look at the obstacles life has thrown at your children. If a child has a disability or a debilitating health condition, he or she should probably be supported more, financially, than your healthy child. If you fell ill and one of your children quit their full-time job to care for you, you may want to leave that child a larger inheritance than the rest of your child, to help cover the financial losses that will be left behind. Remember, inheritance is not a reward in an instance like this; the inheritance is simply for your child's well-being and financial support. You are looking to ensure that your children are financially stable once you are gone; the money is so that they can improve the quality of life of their family moving forward.
If you need help with distributing assets in your will, contact an estate planning attorney near you. For more information, visit a website like http://valentineandvalentine.com.