Proverbs 13:22 tells us we should leave something to our heirs. It says “A good man leaves an inheritance to his children's children … “ But it doesn’t say how to do it. Often when parents make out a will they simply divide their assets equally among their children. That includes property but some experts will tell you that’s asking for trouble.
<ul><li>It's a difficult thing to divide equally when an estate contains property and most do. It immediately forces heirs to make a difficult decision to either hold the property in joint ownership or sell it and divide the proceeds. (A third option - one or more heirs buy out the others.)<ul><li>Deciding as a group what to do with property becomes a complicated business.</li><li>Sometimes properties can actually become a financial burden when you factor in maintenance costs, taxes, insurance &amp; HOA fees.</li><li>Joint decisions about the property have to be made as a group which can cause problems.</li><li>If the property become something akin to a “timeshare” for the heirs and their families, who determines who gets to use the place and when?</li><li>Many times, family homes become a money pit that breeds contention among surviving children who can’t agree on even mundane decisions.</li><li>Resentments that were hidden for years may boil up to the surface when Mom and Dad aren’t around anymore especially if one sibling is made executor of the estate.</li></ul></li><li>Many experts suggest, instead of bequeathing real estate to your children is stipulate in the will that upon your death all property be sold and that the proceeds be divided equally among your heirs. (Obviously, you don’t have to divide the proceeds equally among your heirs. In his book Splitting Heirs,” financial teacher and author Ron Blue says that “if you love your children equally, you’ll treat them uniquely” in your will.)</li><li>Discuss your wishes with your family so that no one is surprised.</li><li>If you need help drawing up a will (or changing one) it’s important to work with an estate attorney who shares your Christian worldview.</li></ul>Next, Rob answers these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
<ul><li>If you recently sold a property and used proceeds as downpayment on a the purchase of a second property, how should you calculate your tithe on these transactions?</li><li>If you're in your 50s, have about $1M in assets, do not have children and will probably leave your estate to either a school or church but do not have solid plans on how this will be executed, how should you start?</li><li>If you've set up an emergency fund, have set a good financial foundation for yourself and realize with the extra money you have each month, you could pay your mortgage off in about 3 1/2 years, should you concentrate on this or is there something else you should do with the extra funds?</li><li>If your 44 year old son passed away and he had a savings account held at a credit union and they won't allow access to the account, what can you do since your son never named an executor or beneficiaries in his will.</li><li>If you lost your job, are currently on unemployment, are having problems with managing your debt, have a high interest auto loan because of your bad credit rating, have 6 payday loans out and you're falling deeper and deeper in debt and your brother has suggested bankruptcy but you feel its an unethical way out, how can you get your situation righted.</li></ul>Be sure to check out the rest of MoneyWise.org to connect with a MoneyWise Coach or access our books and our many free helpful resources. You can also find us on Facebook (MoneyWise Media) and join the conversation. Thanks for your prayerful and financial support that helps keep MoneyWise on the air. And if you'd like to help, just click the Donate tab at the top of the page.

FaithFi

Listen to MoneyWise Live each weekday at 4pm EST on Moody Radio.

MoneyWise Live

Proverbs 13:22 says we should leave something to our heirs but it doesn’t say how to do it. Some experts will tell you that simply dividing your assets equally among your children that includes property is asking for trouble.

A House Divideth

FaithFi | Mar 16, 2022

Show Notes

Where Faith Meets Finance

You May Also Like