Preventing fights about a parent’s estate

On Behalf of | Apr 14, 2016 | Estate Planning

Finances are often a delicate subject for many people in Nevada, but monetary issues combined with the loss of a parent can create new hassles. Parents prepare estate plans to make their wishes known and to hopefully make the process easier for loved ones, but they might also like some tips about preventing arguments when children struggle with understanding a parent’s last wishes.

While there are habits that siblings grow out of, sharing may always be a problem in some families. Some people set up pot trusts that can be distributed among children as needed. This means one child may get more money if an emergency financial situation occurs. Instead of one trust, setting up separate trusts means the kids do not have to share and will not start squabbling if one person gets more of the group money.

There are other details to consider as well. For example, parents should establish rules about a vacation home before passing away. This involves deciding how to handle costs and upkeep, and parents could create an endowment to cover the finances or transfer the home into a limited liability company. When it comes to using the house, parents might like to appoint one or two family members to be in charge. While others might be unhappy if they are not given this responsibility, it may cut down on overall disagreements.

Deciding how to divide an estate can be an especially difficult process when there is a big family and many assets to consider, and people may wish to consult an attorney before drafting a will. If there is a concern that a child will be profligate with an inheritance, creating a trust that contains provisions dealing with the method and timing of distributions may be a better alternative.