Estate planning involves some detailed decision-making, and it is not always as simple as looking at a piece of pie and handing out equal slices. Very few people have all of their assets reduced to an easily distributed pie and you may or may not want to give all the people on your inheritance list an equal share.
As a result you may want to consult with a savvy Kansas City estate planning lawyer, explain what you are trying to accomplish, and proceed with the benefit of some expert advice.
With this in mind, let’s take a look at a typical example. Suppose you have invested the lion’s share of your resources into a considerably valuable portfolio of investment properties that are managed by your son. You have just two children and your daughter, who lives in another state, has no interest in these properties.
As you are planning your estate you would like to leave equal bequests to both your daughter and your son, but you want your son to be able to hang onto all of these investment properties. You could balance the inheritances by taking out a life insurance policy on yourself equal to the value of the investment properties and make your daughter the beneficiary, thereby “equalizing” the amount given to each child.
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Parman & Easterday
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