Estate planning can be very difficult if you do not have a massive fortune and several homes, cars, boats, etc., to divvy up among your heirs. Leaving it all to one heir when you have more than one possible heir is very old-fashioned and not quite the ideal situation anymore either. When you have exactly two heirs and you want to leave something to both of them, it can be either complex or simple, but ultimately you have to place a lot of special rules in your will. Here is how to go about that.
One House or Two?
If you managed to pay off the mortgage on two homes, that is really the best option for your two heirs. Each one gets a house. Easy-peasy, right? Maybe not, considering the fact that both your heirs may want the house that was not willed to him/her, or one heir thinks both houses should be his/hers.
If you only have one house to will to an heir, then the problem is even more complicated. What you want to do is ask adult heirs which house they would prefer to have. Then, set up the will such that your two homes go to your two heirs exactly as they would both have you will them. Include language in your will that forbids one heir from going after the other heir's house with the exception of property losses or poorly made financial deals. If you only have the one house, make sure you will something of equal and desirable value to the second heir so that he/she has no real desire to pursue the home in a contestation of the will.
Liquid Assets
Liquid assets are always cash or anything that can be quickly changed into cash. Your liquid assets can be divided equally between your two heirs, but if you are going to keep some of the assets in investment form, make sure that these assets are making close to equal returns so that the heirs do not quibble over who got more. Special rules in your will should stipulate that you have left what you have left to each heir and if either heir attempts to go after the other heir's inheritance, their own inheritance becomes null and void.
Other Property, Such as Cars, Boats, Etc.
Cars, boats, yachts, buildings, commercial properties, etc., should all be divided in ways that will balance the inheritances as equally as possible. If you only have one car, one boat, one motorcycle, one commercial property, etc., divide these items up by resale value so that each heir gets an equal share if he/she were to sell what he/she has been given. If either of your two heirs wants to sell these extra items for cash, and you are willing to allow it, be sure to stipulate that in your will.
For more information on estate planning, contact an attorney in your area.
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