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When parents pass away, their wealth will be divided among their children. Not every family discusses this openly, and some might feel uncomfortable with the task. Some might have concerns about how to divide their property among their loved ones.
Some might think it’s better to leave their assets to their children as a group and not make individual claims. However, leaving everything to the group is not a good idea if they disagree on how to spend the money. On the other hand, it’s also not a valid option to leave behind no will.
There is no universal way of dividing up your assets. It will always vary depending on your family’s situations — and most importantly, your children’s unique circumstances.
But here are some things to consider to help you through the process.
Each Child’s Financial Standing
One of the things you might want to consider is how well your children are financially doing. If a child is well-off, you probably don’t have a lot of worries about splitting your assets among them. They might be able to manage their own financial needs perfectly.
But if you are worried about your children’s financial status, it’s better to give the assets to someone who is financially better off than the others. This will ensure that you are doing the best thing for your children while they are still alive. It might also help you avoid any potential conflicts among your children.
The State of Your Assets
When dividing up or distributing your assets among your children, you have to consider the condition of your assets. If the assets are in good shape, you can give away whatever you want to your children. This can also help you avoid any potential conflicts among your children.
If your assets are in bad shape, you might have to be more careful in giving out your assets. For example, if you have a house you are about to sell, it’s good to give one of your children the money and the other child the house. This will avoid any conflicts after all.
There are some situations where it would be best to divide everything equally. If all of your children are already at a somewhat good place in life, you won’t have much to worry about.
In this case, it’s logical for each child to receive the same amount when their needs are alike. If you’ve always given them similar support in the past and you know that they’re all somewhat capable and stable, then equal division might not be a bad idea.
However, if your children have different needs. You know that some of them are doing better than others, you have to be very careful in giving out your assets. You have to give out your assets based on the needs of each child.
This might be a more complicated way to avoid conflicts among your heirs. If you give the children who are doing worse than others a sizable share than they need, they might become greedy. On the other hand, if they are not given enough, they might feel left out, and they could create a problem even when they are still living.
Always Consider Your Unique Situation!
There is no perfect way to divide your assets among your children. Every family’s situation is different, so it is hard to develop a definite rule. However, there are some things that you can always keep in mind while you are dividing your assets. If you’re not sure how to divide your assets among your children, it’s always better to seek help from a professional. A professional financial planner can help you with this complicated process.
To learn more about how to have a comfortable and happy retirement life, check out these posts:
- Estate Planning Without Heirs: Everything You Need to Know?
- Why Estate Planning Should Be Your Next Priority
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Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.