I was meeting with a client in Mandeville this week, who had a clear idea of how he wanted his assets divided amongst his kids and grandkids. He wanted his 2 kids to get $350,000 each and his 3 grandkids to receive $100,000 each. At the moment there is enough assets in the estate to satisfy these cash bequests to his kids and grandkids. However, the problem lies in the fact that we don’t know what the future holds, and the value of the estate could go down. This could create a situation where certain heirs get less than intended because there is simply not enough funds to satisfy all the cash bequests.
So, we approached the division of assets differently. Instead, we will be dividing the asserts by percentages where each kid will receive 35% of the total assets and each grandchild receives 10% of the total. This way all heirs will be treated fairly regardless of whether the amount in the estate goes up or goes down. You have multiple options when it comes to dividing up your estate, but it is always wise to divide your assets in a way that will be flexible in the face of changing values and market conditions.
To discuss the best way to divide your estate, call (504) 274-1980 in the Metairie and New Orleans Area or call (985) 246-3020 in Mandeville, Covington, Slidell, Houma, Thibodaux, and surrounding areas.