Beneficiaries often assume that an estate plan will be relatively equal. For instance, say that a parent has $2 million in their estate and four adult children. Those direct beneficiaries may assume they will each receive roughly $500,000 in assets when the parent passes away. Some of them may already be thinking about how they will use their inheritance.
But for the parent drafting the estate plan, is there any legal obligation to make the plan equal? If they decide not to, can the beneficiaries who receive less challenge the will to get a greater share of the assets?
Unequal bequests are completely legal
Legally, an estate plan does not have to be equal. Unequal bequests are entirely permissible and have become increasingly common. For example, a parent may choose to give more financial assets to an adult child with a significantly lower income, knowing they will benefit more and have a greater need, while leaving a smaller portion of the estate to a child who is already financially well-off.
That said, unequal bequests do increase the likelihood of estate disputes. Beneficiaries who receive less may feel slighted or insulted. They may also believe that their parent intended for the estate plan to be equal and that undue influence or other external factors caused the will to be altered.
This is why it’s crucial to be clear about your intentions when drafting an estate plan. Planning well in advance, having open conversations with beneficiaries and knowing the proper legal steps to take can help ensure your wishes are followed and reduce the chances of disputes.