When you make your estate plan, it is up to you how you want to divide your assets. Some people keep things simple and split their assets equally, but you can also use unequal bequests, leaving different amounts to different beneficiaries.
For instance, say that you have two adult children, but they have led very different lives. One of them is a business owner and CEO with a net worth in the millions. The other does not have a college education and has struggled to hold down a job. You may be tempted to leave more financial assets to the child who has a greater need for financial support and assistance.
This can create estate disputes
The biggest problem with unequal bequests is that they can lead to estate disputes between beneficiaries. It could come down to sibling rivalry, where one child feels like you loved the other more or favored them. It could also occur because your chosen beneficiaries assumed things would be split up equally, so they are surprised and unhappy to find out that this is not the case.
When this type of dispute does arise, the way that you have created your estate plan is very important. The more you can do to manage expectations by telling beneficiaries what to expect in advance, the better. But you also want to have an estate plan that is very clear about what your wishes were so that, even if your beneficiaries are unhappy with your decisions, they know that you made these choices yourself and that this is what you wanted. That can reduce the odds of claims of undue influence or manipulation, which are common issues in estate litigation.
When litigation does occur, it can be very complicated, and those going through the process need to be well aware of their legal options.
