Wills: Why Equal is Not Always Fair

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I’m sure many of us can remember being kids and seeing a friend or sibling receive something we did not receive. When we raised the issue with an adult with an obstinate "that's not fair!" we were met with some version of the phrase "fair does not always mean equal."

When it comes to Wills and estate plans, "fair does not always mean equal" is a crucial phrase to remember as you decide how to divide up your assets among your beneficiaries. 

Every family situation is unique and there are many factors that you may take into consideration when it comes to a fair division of your assets versus an equal one. Here are some of the most common sources of inequality that you should consider when writing your will:

Unequal Financial Situations 

When deciding who gets what assets, you should consider the different financial situations of your adult children and other relatives. Certain assets have tax burdens attached to them that may burden one child more than another, depending on their finances. When thinking about what is "fair," you should always consider the financial "starting point" for each of your children. 

Disabled Dependents

This is another significant factor that can affect dividing assets by what is "fair" instead of equal. For example, if there is a dependent that would require professional care if you or your spouse were to die, dedicating slightly more to that individual to cover the costs of such care could be easily be considered an effort to make the overall distribution fairer for everyone. Additionally, that distribution typically must be put into a special needs trust in order to not disqualify the disabled relative from state and federal benefits. 

Special Job Considerations of Your Beneficiaries

This often applies in situations where your dependents may have high-profile or top-secret professional lives. For example, if you have a child who is working in undercover law enforcement, they may not want to be named in a Will which becomes public once probate is opened. You should talk to your family about situations like this and see how they would like to proceed so that assets can be divided fairly without complicating their professional lives. Gifting during that child’s lifetime may be the better approach. 

Blended Family Situations

Complex family structures can create complex issues when it comes to dividing assets. Some spouses may have children from a previous marriage that they may want to prioritize distributing their personal assets versus their stepchildren. Some families may wish to ensure that all children, regardless of whether they are involved with the current family structure or not, get a relatively equal share of all assets. You must also consider whether to treat adult children the same as minor children. When you have a blended family, you may want to talk to your family determine their expectations. 

This is just a sampling of different situations you may be facing as you decide how to divide up your assets. The best approach is to personalize the distribution to each loved one in a manner appropriate to that person rather than as a group. If you need help in deciding how to fairly divide assets in your Will or don't even know how to start, an experienced estate planning attorney can help you through every step of the process. 

At The Law Office of Dawn Trainor-Fogleman, I am here to help you plan for life’s unexpected events. Call (301) 456-0982 or fill out this convenient form for a FREE consultation to review your estate planning needs. With over 20 years of legal experience in the District of Columbia and Maryland, I am dedicated to making estate planning understandable and affordable so everyone can enjoy peace of mind and security for their loved ones.