In your will, you’ll need to designate who among your beneficiaries gets which of your assets after you pass. If you have more than one child, you may wonder how you can distribute your assets fairly. Here are a few factors to consider that play into who deserves what to cover everyone’s needs.

A Guide to Distributing Assets to Your Children

1. Consider Everyone’s Income & Debt

Assess each child’s financial state. Is your son entering the workforce, managing student debt, and pursuing career advancement? He may need more money compared to his CEO sister who has a significant income and financial stability. Is a younger child just finishing high school and heading off to college? They could use extra funds to pay for their education. Children who actively work in the family business may also warrant a larger ownership percentage than others working outside of it.

2. Examine Existing Assets & Life Events

Look at what your children own to determine their financial status. If your son has a house he’s already paid off, it may be fair to give his sister, who is currently trying to buy or balancing a mortgage, a larger inheritance. If one child has married a spouse with a significant income and doesn’t have children, the other child who is unmarried or a single parent may deserve more support. Older children approaching retirement may not require a large inheritance, and you may want to establish an inheritance payout in your will for their children instead.

3. Take Special Needs & Responsibilities Into Account

Life presents many unforeseen challenges. If one of your children has a disability or developed a debilitating health condition, you may want to support them with more money than their healthy siblings. A child who has quit their job to care for you full-time may also deserve a larger inheritance to cover the losses. Keep in mind that inheritance isn’t a reward in these instances—it’s for financial support and well-being. You want to ensure all of your children are financially stable and can use the money to improve their family’s quality of life.

If you need assistance determining how to distribute your assets in your will, work with the Honolulu-based team at Wills and Trusts Hawaii. Serving all of Oahu, they use their expertise in estate law to determine the best solution for each client’s unique needs. Call (808) 792-8777 or visit their website to schedule a free consultation.