Passing on your estate or land to your children can be a stressful process, especially when you're trying to equalize the benefits of the inheritance among the children. Remember that inheritance feuds are bound to occur if a child feels that their share of the estate is unjustly smaller than that of the other siblings. Below are some helpful tips on estate inheritance that can help you avoid land inheritance feuds among your children.
Set Clear Responsibilities
Often, even if an estate is subdivided among the children, you are likely to find that some business activities ought to be run with the estate operating as a single unit. So to avoid estate inheritance feuds among your children, it's important that you set clear responsibilities for each child regarding the management of the estate and also identify how revenues generated will be shared.
For example, if one child is responsible for running operations in the estate and the others are not within to help with the operations, then you should offer the child on the ground compensation for the extra duties involved. You may want to agree on a salary for the child in charge with the entire family and have the salary deducted before profits are shared.
Set Estate Boundaries Officially
It's vital that you not only show your children where every person's share of the estate begins and ends, but also have a written consent or agreement. It's advisable that you hire a professional land surveyor to assess the estate, resolve any boundary issues and advise you on how best to subdivide the estate. Remember that at times the estate may have issues you are unaware of, such as missing corners or encroachment from neighbours along the boundaries. So it's advisable that you address all estate subdivision issues with the help of an expert.
Getting individual title deeds for each child is the best way forward to setting official estate boundaries. However, if you're not in a position to get the title deeds, then at least make sure the children sign a consent form agreeing that they are aware and comfortable with the estate subdivisions. Involve a lawyer in the consent form signing exercise, so that the process can be documented properly as legally binding.
Protect the Inheritance
Protecting the inheritance you leave for your children from misuse in the future will help prevent chances of inheritance feuds among your children. Feuds can arise later in life if, for instance, one child misuses their property and creates losses for others, especially when the estate runs best as a whole.
So to protect the inheritance, you may want to issue binding terms and conditions on how the estate is to be used. For example, you can state in the terms and conditions that no child is allowed to sell their share of the estate all at once or in the next 15 years. Withholding some rights from your children will prevent misuse and unnecessary scrambles that may arise causing inheritance feuds.
Subdividing your estate among your children as inheritance doesn't have to be disastrous and a source of conflict provided you do it the right way. The tips provided above can help you subdivide your estate peacefully and effectively.
