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Distributing Assets Equally Between Children

Discussion in 'Miscellaneous in Parenting' started by Rihana, Apr 26, 2017.

  1. Rihana

    Rihana Moderator Staff Member IL Hall of Fame

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    When parents with more than one child are deciding how to distribute the assets between the children, should they keep in mind things like:

    - how much was spent on each child's education
    - how much was spent on each child's wedding
    - any big monetary help given like for buying a house
    - earning potential of each child

    Let's assume the parents do not plan to depend on any child financially or physically in very old age. Children are going to get the money after both parents pass away. So, the above distribution is happening in a will. And the will is going to be modified once in 3-4 years as circumstances change and as children grow older.

    In particular, should the earning potential of a child be considered when dividing assets?
     
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  2. Rihana

    Rihana Moderator Staff Member IL Hall of Fame

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    I think how much was spent on education, wedding and any big help like for buying a house, should be somewhat factored in (not down to the last cent), but a child's earning potential should not have an impact on how parents divide assets between the children.
     
    Last edited: Apr 26, 2017
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  3. ashneys

    ashneys Platinum IL'ite

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    Big help like buying a house / properties / business money shud b considered.

    Education n marriage depends if a lot of money was put into it. N also based on the family's wealth. Ppl splitting crores worth of property r not gona b keen to count a few lakhs of education / marriage expense. Or properties worth lakhs, abt a few thousands (50-100k for example) of expense.

    Earning potential doesn't seem fair. It's like punishing for working hard n doin well. But in some rare cases, if one of the sibling is doin very badly (medical, loss financially or personally) n needs extra help, then dat can b decided as a whole family.
     
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  4. chocolate

    chocolate Platinum IL'ite

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    Op, Sadly none of these factors influence parents while dividing assets. The cream of the crop or the kids who are near them get the major share. Distribution doesn't come with reasons. It just comes with we decided the major share has to go with son A who was near them and all rest with daughter B who was also near us. Son C absolutely doesn't get anything becoz he was always abroad .Logic doesn't work in property division. Its always we decided and that's that.

    I don't think much will change in coming yrs except a few specs of parents here and there who might do a logical and equal division.Lets hope we are one of them. Good Luck and sane mind to all of us and future generations.
     
  5. Shanvy

    Shanvy IL Hall of Fame

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    @Rihana in our case it is just what we earned and nothing from the gps. With a son and a daughter what we think is equal distribution. But taking a balance to everything is not possible. For now they are not interested


    Now this is something that we have never counted. Probably because each Of them has taken up what they like and we are going to help them till they can do it on their own. And you know dd is studying and yet is already in a position to earn sizably the moment she wants to join the workforce while ds would be 28 to 30 by the time he completes his studies and we do not know if he would need our support then.and we have not needed to invest much like the other professional courses.

    the kids feel wedding extravaganza is a waste. We have arguments on and off. Will know what we spend then. They each have a savings in their names from their pocket money and will want to contribute themselves.

    i don't think so because they each would get a property if we hold on to them till later. Anything else comes out of their savings and earnings and they are both aware of it.


    come on that is micro analysis. But i believe as of today my dd is in a better position of job security the my ds because of his chosen field.
    And we have clearly discussed the earning potential vs. Peerpressure vs. His goals and revisited the discussion for quite some years now. He has been strangely fixated on his choice from as young as 6 and is pursuing it.
    So it need not be a factor is my opinion.
    no will but we have told dd about it as ds is still not serious about any of these. we gave both the same opportunities. I can't penalise my daughter favoring my son just because he has health issues or anything.
    Any assets that are there after both of us would pass on to the kids equally. Jewellery silver and all will be given equally to both . Property equally, though dh feels they will not be interested in staying there and they can sell it all and divide 80% between them and 20% of all the cash (if any) goes into a trust that funds the education of a couple of students as is done every year.
     
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  6. justanothergirl

    justanothergirl IL Hall of Fame

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    Its not going to be easy and fair need not always mean equal.....that much I know.
    Here is a tentative option I am looking at. Their under grad and grad will be paid for no matter what or where they choose to major in . I will not consider that as a part of the equation. IF one makes it to state school /community college and another to Ivy league its entirely upto them and will not be taken into consideration at the time of division of assets . Wedding is another story. There will be a set amount I plan to spend for each of their weddings. IF they do not want an elaborate wedding or choose to pay for it themselves ..it will given to the young couple as a gift.

    There will be two parts to the assets division . One(the larger portion) will be split equally among the kids. There will be another portion which will be a wild card and I will keep for the child who needs it the most..for anything unexpected. Life is very long and quite unpredictable. I intend to keep that buffer. If at the time of our passing there is no such untoward occurrence or need ...it will also be split equally. One thing I am pretty sure though whatever we choose to do it will be made transparent to all involved..both the reasoning and the amounts.
     
  7. BhumiBabe

    BhumiBabe Platinum IL'ite

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    - how much was spent on each child's education - Children don't have control over this
    - how much was spent on each child's wedding - Children don't have control over this
    - any big monetary help given like for buying a house -Sure, you can consider that as part of their inheritance
    - earning potential of each child - Sounds like a punishment for doing well financially

    Personally, I think inheritances should be divided equally. The only thing that might affect this amount is if the parents supported their child for large purchases, like the house.
     
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  8. Shanvy

    Shanvy IL Hall of Fame

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    @justanothergirl however transparent we are how the equation changes with time and situations is something beyond our control right. I like the way you have planned. I am in the few years ahead of you phase and still have no idea of the wedding expenses, though the 40 and 50'lakhs i hear makes me :flushed:
     
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  9. yellowmango

    yellowmango IL Hall of Fame

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    This is very similar to our plan.
    Education is on us.
    We have Rds for marriage with a max limit..
    What is left is a gift ...if more is spent ,they pay the extra.
    Property/jewelery divided equally ....but we get to decide abut the money,mfs, bonds etc at a later date depending on who needs what.
     
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  10. justanothergirl

    justanothergirl IL Hall of Fame

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    I agree. We cannot control how we /or our actions are perceived. As long as we are at peace with the choices we make ...thats all I can ask for.
     
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