Equality Is Often Unfair

Almost all parents, in their estate planning, say they want their assets to be divided equally among their children. This concept seems so obviously “fair” that it's rarely even challenged. Psychologically, the transfer of wealth is perceived as a symbol of love. So when parents divide their estate equally among their children, they're expressing that they care for and love them equally.

What a trap! Is it “fair” to give two brothers equal shares of stock in the family firm when one has worked hard for 20 years building the business while the other has had nothing to do with it? Of course not. I suspect that when parents think about their estate, they rapidly retreat to equality because it at least has the appearance of being fair and is simpler than creating a meaningful division of assets.

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