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Tag: Inheritance

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Adopting an Heir

MP900289365[1]To make sure that someone they love receives a portion of their estate some people decide to adopt the loved one. That is unnecessary and can create other complications.

When it comes to the law, having limited information can be dangerous.

For example, what if you know there is a default rule that says your children will inherit your estate if you do not have a living spouse. So what if you reared someone as if he or she was your own child and you would like to make sure they receive an equal share of your estate? Does that mean you should adopt that person?

That is what one person recently wrote and asked My San Antonio, as reported in "Should adoption be used to ensure an inheritance?"

In that situation adopting the person would work. However, there is a far simpler way to make sure someone receives an inheritance.

If you create an estate plan, then you can give an inheritance to anyone you want. The only restriction is that you cannot cut out your spouse or minor children completely.

On the other hand, adoption can create complications, since it severs the legal relationship between the adopted person and his or her biological family. It could potentially create other legal obligations for you and the other person.

Before adopting someone for inheritance purposes, visit an estate planning attorney.

In the end, getting a proper estate plan created may be an easier method of leaving your assets for another person than adopting them.

Reference: My San Antonio (Oct. 13, 2016) "Should adoption be used to ensure an inheritance?"

 

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Is an Inheritance the Same Thing as Love?

Bigstock-Large-Mixed-Race-Family-2589417_(2)[1]Parents who are considering leaving their children unequal inheritances often struggle with the notion that those children will believe they are not loved equally as a result.

Parents have many good reasons for wanting to leave one child a larger inheritance than another child. The most common reasons are that one child needs the money more or that one child has been given more financial support than the other previously.

Recently, Washington Post columnist Michelle Singletary discussed these reasons and others in an article. She receive some pushback from readers, which she discusses in another column reprinted in the Ventura County Star as "Michelle Singletary: Will does not equal parental love."

Singletary's readers pointed out that children who receive a lesser inheritance than others often come to believe that means their parents loved them less or that they have done something wrong.

Sometimes the unequal inheritances even lead to bitter family disputes.

Singletary responds with a plea to those who inherit less. She encourages them not to assume they were loved less by their parents, but to consider the valid reasons for inequality.

While that debate is interesting, there is another thing that needs to be pointed out. A lot of the problems unequal inheritances cause can be avoided. Parents can discuss their estate plans with their children before they pass away and let the children know why there is a disparity.

Consult a qualified estate planning attorney to help you through this delicate process.

Reference: Ventura County Star (Oct. 12, 2016) "Michelle Singletary: Will does not equal parental love."

 

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To Leave an Inheritance or Not

Bigstock-Family-Portrait-At-Christmas-4881212[1]Many people struggle with the question whether it is better to leave their children an inheritance or not. It is not an easy question to answer.

Recently, FOX Business reported on a survey that found some 23% of retired Americans would prefer to spend all of their money and not leave their children an inheritance in "Should You Leave Your Kids an Inheritance?"

They asked Dave Ramsey for his opinion on the subject. Ramsey suggested that if you have bad kids, then, leaving an inheritance for them just rewards their misbehavior. He went on to say that if you have good kids, then not leaving them an inheritance teaches them money is evil. However, that is not the entire story.

It is understandable why a parent would not want to leave an inheritance to a child who has an unhealthy lifestyle. No parent wants to give a child money that would just fuel a drug habit, for example.

With good estate planning, however, a parent can actually leave an inheritance that encourages the misbehaving child to straighten up and does not give the child funds for bad behavior.

Another possibility is to skip the child with bad habits or behaviors and instead give the inheritance to grandchildren or other relatives.

There are several options for estate planning around a misbehaving adult child.

Visit an estate planning attorney to learn more about them and how you can use them.

Reference: FOX Business (Oct. 12, 2016) "Should You Leave Your Kids an Inheritance?"