Communication vital when distributing estate to children

WHEN parents are considering their wills and the distribution of their estate among their children, they will often want to treat all of their children equally.

At the same time, there may be a desire to leave one particular substantial asset to one or more of the children, for very good reason.

Sometimes that can make equal distribution inappropriate an or impossible. Sometimes “fair” and “equal” are not the same thing, but disappointed siblings may not see it that way when they find out what is in the will.

One or more children may have spent many years working in the family business or on the family farm for negligible wages, expecting to take over that business or farm.

One child may live with the par- ents for many years to care for them, in the expectation they will receive the family home.

Leaving equal distributions to the children in these circumstances may be grossly unfair.

Sacrifices may have been made or other options not pursued, to support parents or the family enterprise in the expectation of receiving a particular asset under the parent’s will.

Even if these arrangements have never been clearly articulated or agreed to, the law may recognise that the child has an entitlement to receive that asset, even if it is not left to them under the parent’s will.

However, litigation to pursue that entitlement is costly.

As ever, good communication is the best way to limit the risk of dispute and litigation.

If a parent’s wishes on distribution of their estate among their children is likely to surprise or disappoint any of them, it is best to address the issue while the parents are around to explain why.

If it becomes obvious that someone will be lining up to dispute their will, steps can be taken while they are alive to make sure their wishes are put into effect.