They say that money has a funny effect on people. How many times have we seen families break apart because of money, assets, and inheritance? How many times have we heard stories of siblings squabbling and literally scratching each other’s eyes out because they are fighting over properties? Even old wounds and scars will be reopened because of money matters. What used to be a loving family will fall apart all because of money.
Siblings can do a TIC 1031 exchange so that they can divide the profit from the assets equally. TIC stands for “tenants in common.” Usually, when siblings have equal claims to a piece of property, the court orders to sell the property and divide the amount among the siblings. If one sibling decides to buy the property from their siblings, that’s okay, too.
Fighting over inheritance is always an emotional and mental turmoil for the people involved. Moreover, filing cases in court will involve a lot of money. So, in the end, you are not only cutting off ties with family, but you’re also throwing away a serious amount of money.
Prepare a Will
If only parents realize the importance of estate planning, then there will be no problems for their children. A will allows the parents to equally partition their assets to their children. It is the right of the parents to choose who will receive the most of their assets among their children or to divide these assets into equal parts. Although there could be questions about why the will was written in such a way, the siblings have no other option but to follow their parents’ wishes.
Call a Family Meeting
Before you get the last will and testament ready, call for a family meeting. Let your children know what will be left for them. Tell them about your plans on how you will divide these assets among them. If there are any concerns about how you are going to divide the properties, then it’s better to talk about it in the open. Siblings tend to resent one another when they feel that another is being favored.
Divide the Estate Equally
Resist the urge to favor the needier of your children. Those who are more successful will feel a certain resentment toward you and their siblings. They will feel penalized for being more successful than your other children. That will create a division among your children long after you are gone.
There’s a certain psychological blow to receiving less than what your other siblings receive from the parents. Inheritance always feels like a symbol of the love the parents have for their kids. When you give more to another, it will make your other children feel that sibling is more loved than them.
A last will and testament will clear everything to your children. It prevents them from having to fight over the assets you have left behind. It’s always better to be transparent about why you’re leaving which property to whom. Having your affairs in order will give you peace that your children will have maintained their love and respect for each other.