Published on: 27th December 2021

Is Equal Distribution to Children Always Equitable?

Deciding how to distribute assets to children can be a complex and difficult decision to make. Whilst the majority of adults plan to share their assets to their children equally, it is something that requires significant thought.

A recent study has found that 68% of adults in the UK are planning to distribute their estate equally amongst their children. When children are similarly situated and have received similar support throughout their life, it makes sense to provide for them equally within a Will. If all children received similar support, have comparable needs, and are financially responsible, equal distribution might be the best option. In some of these situations, a family home could be passed to children in equal shares. This can result in the sale of property and distributing the money and other assets equally or in the use of the house by all children. Alternatively, one child might have more need to be given the family house and the value of the property could be provided to the other children in cash or other assets to even the distribution.

Understanding that in some circumstances, equal is not necessarily equitable can aid in the decision of how to split assets. This is a reason why 16% of British adults have decided to split their assets unequally amongst their children. If a child is much wealthier or in significantly more financial need than other children, unequal distribution might be an option to consider. If a child becomes an integral part of their parents’ care or helps them more with everyday tasks, it might be desirable to reward them for their extra work by providing extra for them in a Will. If you have a child with a disability that will need more help than your other children, this could be an additional reason why unequal distribution is the best option for you. Additionally, a significant portion of this 16% stated that they would take into consideration the amount of money that they provided to any of their children during their lifetime and plan distribution to balance the overall amount provided.

The remaining 16% of adults are undecided on how they wish to distribute their assets. If you are in this position and still weighing your options, it can also be beneficial to leave a letter with your Will explaining your decision. Another survey has found that the average amount the people expect to receive from their parents is actually 60% lower than the actual average figure they do receive. Explaining your thoughts and concerns in a letter to your children can help aid in potential family tension after you have passed away. It can also be beneficial to discuss your situation with a Will Writing and Estate Planning firm such as Casey & Associates.

Please note that the figures provided are from historical research and, in reality, these numbers are constantly changing as individuals’ circumstances change. For this reason, we recommend our clients update us if there is a change in circumstances for you or your beneficiaries. This will enable us to aid you in ensuring you have a Will that best provides for your loved ones.

Our experienced Consultants have discussed these situations with many clients and worked out bespoke solutions for each of them. If you are looking to write a Will or amend your current Will and are worried about how to best distribute your assets for your children, consider booking a no-obligation appointment where we can help you to create a Will that you are happy with. To book, please call 01732 868190 or use our online form by clicking here.

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Our Covid-19 policy is now that if you wish to give instructions or require general information about our Wills, Lasting Powers of Attorney, or Trusts then we will carry out a telephone or Zoom appointment. However, if you wish to give instructions to one of our Consultants and you feel that you can only do this at a Face to Face meeting we are offering, at our Consultant’s discretion, a limited number of Face to Face appointments in most of the areas we normally cover (subject to Government advice). To see the areas we normally cover please click here. To arrange an appointment please telephone 01732 868190 or click here.

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