As you do your estate planning, one of your main goals may be to reduce the odds that your heirs will get into a dispute over the money. That’s wise. These are the types of arguments that can make it so that siblings do not talk to each other for the rest of their lives.
One thing you need to consider, though, is that not all estate disputes happen because of anything that you, as the parent, have done wrong. In a lot of cases, it is the siblings who have made financial mistakes.
For instance, some have noted that the generation that is set to inherit a record amount of wealth has often not saved properly for retirement. Unless something changes, they could hit retirement age with a serious shortage in funds.
There are two things to think about here. First off, could they be neglecting their planning because they think they’re going to get a big inheritance? This is problematic because their expectations may not match reality.
The second issue is simply that they’ll be dependent on that inheritance, whether they planned that way intentionally or not. This can make disputes worse because they feel like they cannot back off, compromise or give in. They feel that they have to fight for every last cent because they are not going to be able to retire and take care of their own families if they do not.
When you keep these things in mind during your own estate planning, you may be able to find solutions. Be sure you know what options you have with your estate plans so that you can ease the way for your heirs after your passing.