Though there are lots of ways to accomplish them, the
financial goals of estate planning are simple:
Maximize the assets that go to heirs, and minimize the tax they’ll pay.
You may feel, however, that this is not enough. You don’t just want to pass on your money—you want to give your values, too. You might hope that the assets you worked hard to build will be passed along to future generations, not squandered or wasted, and that your values will act as a living memorial, giving a sense of who you were to generations of family you will never meet.
Many people also voice concern that, without the values that sustain a good life, the money may do their heirs more harm than good. A son or daughter who doesn’t place a premium on hard work, for instance, might rely on a large inheritance in lieu of an education and meaningful career. An heir with a gambling addiction might squander any money she receives, all while creating a more serious addiction; adult children with marital troubles may also waste inheritances. Heirs who don’t understand their parents’ desire for community involvement may resent their parents’ charitable bequests.
Treating your kids fairly doesn't necessarily mean treating them equally.
Other parents wonder how to balance inheritances among children with different needs and contributions. Should a child who spent time and energy caring for aging parents inherit more than his siblings? How can parents divide a family business in which only some of their children work? Are there fair ways to leave single, indivisible assets, such as a family cabin or a wedding ring, without encouraging a family fight? Parents often worry that their answers to these questions will destroy family harmony after they’re gone.
Fortunately, you can employ strategies that will work before and after your death that will help your children and grandchildren have substantial lives—not just substantial bank accounts.
