Legacy Matters
The minefields of dividing an estate among different siblings.
"If you're not careful, it can cause people to be bitter for decades, it can ruin relationships," says Chris Dardaman, chief executive officer of Brightworth LLC, a financial advisory firm in Atlanta.
Tips on Dividing an Estate Among Half Siblings by Bridget O'Brian in the Wall Stree Journal
• Sit down with the entire family to discuss the estate plans. Each family needs to determine how specific to get on the topic of numbers, but at the very least such a confab can eliminate negative surprises. "You want, to the extent you can, to remove the emotional powder kegs," says Mr. Dardaman.
• Consider providing for each of your children -- from all marriages -- in your will. Such a move could eliminate or reduce the chance that one or more of the children would contest your will, says Mr. Nass. It's also helpful to write a side letter, or a note to your children, explaining why you've structured things the way you have and, perhaps, to assuage bruised feelings.
• You don't want bitterness between the families to turn into the adult kids fighting the widowed spouse, says Ms. Vasileff. Be sure the second spouse understands and is supportive of your plans.
• Consider an irrevocable insurance trust, a move that can help to avoid probate altogether.