-Parents tell children that their favorite possessions will be theirs someday, and in a cooperative family where the siblings all get along, those gifts are often bestowed as the parents wish. But not always. Sometimes the objects are sold by the parents, new assets are added to the estate over time, and some things, like investments and real estate, need to be sold and the proceeds divided equally. We Help You Legal, the Paso Robles company assisting with wills, living trusts, and other legal documents has compiled the top considerations to think about to help ensure that children inherit equally and the process goes smoothly.
Having a will with clear instructions and a living (revocable) trust are options for making sure assets are equally distributed. A revocable trust allows the parents to keep control of their assets while they are living, make any necessary changes to the will and trust, if needed thoroughout their lifetimes, and avoid probate for those left behind.
A will alone generally doesn’t have the level of protection that comes with a living trust. Wills can be challenged in probate court, taking longer to settle, and the outcome might not be what the parents intended.
A living trust allows for more detailed instructions about asset distribution and avoids probate court so that assets are distributed as intended, and probate fees and taxes can be avoided. A trust is also a private document and not a public record, so the proceedings are also private.
A pour-over will, in conjunction with a living trust ensures that any assets not already in the trust at the time of death are “poured over” into the trust and distributed according to its terms. This can help catch any assets that may not have been transferred into the trust. We Help You Legal can assist with a pour-over will and a living trust at its Paso Robles or San Luis Obispo office.
Additional strategies that help ensure equal inheritance include:
- Using percentages instead of specific amounts—This approach can help maintain equality even if the value of the estate changes over time.
- Address non-probate assets—Remember that some assets, such as life insurance policies and retirement accounts, pass directly to named beneficiaries outside of probate. Ensure that these designations align with your overall estate plan to maintain equality with the inheritances.
- Include a no-contest clause—A no-contest clause can discourage challenges to the will or trust by stating that anyone who contests the document forfeits their inheritance. While not foolproof, this can help ensure your wishes and maintain equality among beneficiaries.
- Special needs children—If you have a child with special needs, special provisions may need to be made that could affect equal distribution.
- Family business— If one child is inheriting the family business consider other ways to equalize inheritance for other children.
- Consider a professional trustee (also known as a fiduciary)—If you’re concerned about potential conflicts or bias in asset distribution, consider naming a professional trustee to manage and distribute the assets. This can help ensure impartiality and adherence to your wishes.
- Regular review and updates—Life circumstances change, and so should an estate plan. Regularly review and update the will and trust to ensure everything is current.
The final decisions about how assets are distributed rests with the parents. It’s not necessary to have a large estate with valuable assets to set up a living trust. Even modest estates with one family home, life insurance policies, and family possessions can benefit.
With offices in San Luis Obispo and Paso Robles, the living trust documentation can be completed and filed with We Help You Legal’s assistance. To simplify the process, complete living will and estate planning packets, in English and Spanish, are available on We Help You Legal’s website.
The living will packet contains:
- Revocable Living Trust
- Certification of Trust
- Pour Over Will
The estate plan package contains all of the living will documents and:
- Power of Attorney for Healthcare Management
- Power of Attorney for Financial Management
- Final Arrangements
We Help You Legal also helps with legal documents for divorce, legal separation, annulment, guardianships, adoptions, corporation/LLC, and more.
We Help You Legal is a “self-help” legal document assistance company that provides document preparation without the high cost of an attorney. We Help You Legal, Inc. is not a law firm. We cannot represent you in court, advise you about your legal rights or the law, or select forms for you.
We Help You Legal, Inc.
720 10th St,
Paso Robles, CA 93446
(805) 237-7770