How To Split Inheritance Fairly

Few issues cause as much disagreement between family members as inheritances. Although you might want to divide your estate equally, this might not be the best solution in all situations. Begin by identifying your estate and estimating its value. Then consider whether some beneficiaries should inherit more than others.

Sadly many disputes erupt after a family member dies, and it’s time to divide up the assets of an estate. Family disputes can often result in lengthy and expensive legal actions. However, a little forethought can avoid such disputes, or they can be addressed by family members who approach any problems that do occur in a pragmatic and unemotional way. In this article, how to split inheritance fairly, we take a look at the options available to you.

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For a free initial discussion on how we can help you deal with an estate that has been left to you and other family members, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you understand your rights and will also help avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

What happens if there is no Will?

If you don’t have a Will when you pass away, your money, property and possessions will be shared out according to the law instead of your wishes. This can mean that they pass to someone you didn’t expect or that someone you wanted to pass things on to, ends up with nothing.

When a person dies without leaving a valid Will, their property (the estate) must be shared out according to certain rules. These are called the rules of intestacy.

Only married or civil partners and some other close relatives can inherit under the rules of intestacy, including your children. If there is no Will a court will use the law to make many decisions about what happens to your assets and about who will take care of your child or children depending on their age.

Making a Will is your opportunity to make a clear plan that safeguards your children and family members and the property that you want to leave to them.

Intestacy rules

Intestacy rules state what happens when there isn’t a Will in place, including who can and can’t inherit. The rules state who your estate will be divided between.

What happens depends on the value of the estate and whether you are married or in a civil partnership. That may determine whether your children receive anything from your estate. To find out more, speak to our expert Wills team today.

Identify your assets

The first thing to do is to create a list of your assets. The length of this list will vary from person to person but could typically include, bank savings, insurance policies, stocks and shares, trusts, property, jewellery, artwork, cars, intellectual rights, businesses and associated assets. You should also remember to list family possessions that may have little monetary value but have great sentimental value.

Once you have identified these items, you need to get them valued. Remember, values do change over time so try and keep these valuations up to date.

Dividing your estate fairly

The issue of what is defined as fair will need to be addressed. If, for example, you have three children, you might define fair as splitting your estate three ways. However, you might define “fair” differently, depending on your circumstances. For example, one of your children may have special needs that will require additional support (and expense), you may have step-children that may also receive an inheritance from their biological parents so this should be factored in, you may choose to leave a larger portion of your estate to a surviving spouse than your children, if you have a family business it may be the case that one of your children was instrumental in its success so you might want to leave them the business and sometimes one of your family members may be struggling with some form of addiction. In these circumstances, a trust might be a better option than leaving them a lump sum.

It is therefore very important to be considered about making these decisions and mindful of the consequences of whom you leave what to in your estate.

Managing Expectations

Your beneficiaries might assume they will all get an equal share of your estate. If you are intending to give unequal shares, you should explain why. Write a letter to your beneficiaries or have a meeting where you talk about how you are leaving assets. Also, some of your heirs might be expecting to inherit a certain amount of money or property. They may even be making decisions based upon these expectations. It’s only fair to let them know the truth before you die. If they aren’t inheriting as much as they expect, tell them now.

It is also wise to discuss your intentions for family heirlooms. Some family members may be more attached to them than others.

Estate-Planning Steps for Parents

Planning before death can address many of the issues that arise after someone dies. Perhaps the most important action you can take is to have a Will that specifies which sibling receives what in terms of property. Consideration should be given to all the assets and who gets what can be spelt out in a Will. Alternatively, it is possible to give directions that the family house is sold and the proceeds divided evenly. If a parent wants to leave one sibling out of the will, this is legally permissible. There is no rule against disinheriting a child. However, to avoid legal challenges by a disinherited sibling, a parent should consider discussing the matter with the child or explaining the reason in the Will.

It is good practice to review and update an estate plan after a major life event, such as the birth of a grandchild.

Using a non-sibling executor or trustee for the estate can also help keep the peace. A third party who does not stand to gain from any decisions regarding property distributions may be a good idea, particularly if a parent believes there could be sibling disputes after they die.

Parents usually know whether their children are likely to fight over their inheritance and should take action to prevent conflicts after their death. Whatever a parent decides, review actions from time to time. Feelings among siblings and financial circumstances can change, and plans should be revised accordingly. If steps are not taken before death, you can still use strategies to minimize conflict during the settlement of the estate.

If one of the siblings is not happy with the wording of the Will, he or she could sue the estate. This could be on the basis that reasonable provision was not made for him or her. This falls under the Provisions for Family and dependants Act 1975. Any claim must be made within six months of the grant of probate and if this time has elapsed, permission of the court is required in order for a claim to be brought.

How we can help

We have a proven track-record of helping clients draft their wills and advise upon estates governed by the rules of intestacy. This includes relatively straightforward estates and also complex estates where assets are held all over the world. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Wills and Probate Solicitors

It is important for you to be well informed about the issues and possible implications of writing your Will or if you find yourself involved in an estate left without a Will. However, expert legal support is crucial in terms of ensuring your final wishes are met as you would want them to be or in guiding you along the path of intestacy.

To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

 

Authored by Ben Posted in News, Private Client Tagged as