Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
Dividing an inheritance is rarely straightforward, but in blended families, the stakes and emotions can be particularly high.
On a recent episode of The Ramsey Show, Jared from Phoenix, Arizona called in to discuss whether he should give some of the $3 million inheritance he received from his late father to his stepsister, since she wasn’t happy about being left out of the will. He has already built a nest egg of roughly $750,000 for himself, so he felt guilty for denying her money that could potentially help her later in life.
“She got upset because of the numbers involved,” recounting his stepsister saying: “‘I don’t understand why we can’t all just share?’”
Ramsey had a blunt response: “Because we’re not communists.”
The situation highlights how difficult it can be to manage the expectations of your loved ones even if you have a simple estate plan in place.
Jared described his father’s estate plan as relatively simple on paper: both he and his brother received $3 million to $4 million each. However, the fact that his step-siblings have been left out of the will has ignited strong emotions and family drama.
This isn’t unusual — but at least the direction was clear.
Tensions can be amplified if there’s no plan at all. According to a 2023 survey by LegalShield, nearly 60% of Americans don’t have an estate plan and 58% of people have experienced family disputes due to a lack of a plan.
Families can have disputes even when there is an end-of-life plan in place. Of those that had wills, 36% of respondents said their will had surprises for their beneficiaries. Assuming some of these are unpleasant surprises, the potential for family drama is high.
Seeking out the help of a professional wills and estates lawyer to proactively prepare a robust estate plan can mitigate some of these issues – though a study by Caring.com found that 13% of Americans believe that it’s too expensive to make a will, while 12% find the process to be cumbersome.
Story Continues
But securing your family’s future doesn’t need to cost an arm and a leg. With Ethos Will & Trust, you can create a will for as little as $149.
In as little as 20 minutes, you can create a custom will online. For eligible policies, you can make edits to your will in the future with no additional costs.
Plus, you can get a will for free from Ethos Will & Trust with your purchase of a life insurance policy.
You can get term life insurance in 5 minutes, with no medical exams or blood tests.
You can get a policy with up to $2 million in coverage, starting at just $2/day.
Ethos’ application process ensures you get flexible coverage options quickly and transparently, allowing you to focus on what matters most.
Read more: Do you own rental properties in the US? These 6 hacks can help you boost your income and lower your tax burden
To avoid creating tension within the family over your estate, it makes sense to not only have a plan, but also to talk about it with all your loved ones.
By taking the time to inform your family about your plan and all the reasons and motivations behind your decisions, you can eliminate any room for ambiguity. Conflicts can be further reduced if you discuss your will not just with your beneficiaries but also with any other family members who may have been excluded.
If you’re unsure of the best approach for you, it might be worth speaking with a financial advisor who can help craft a strategy that fits your goals — and gives you peace of mind.
Advisor.com can help you find someone that’s right for you.
This online platform connects you with vetted financial advisors in minutes. How it works is easy: Just answer a few quick questions about yourself and your finances, and the platform will match you with a financial advisor best suited to helping you make your money last in retirement.
From here, you can view their profile, read past client reviews and schedule an initial consultation for free with no obligation to hire.
Also, having your will vetted by an experienced lawyer can help you ensure your wishes are upheld, even if disputes arise. Wills created through Ethos Will & Trust are vetted by attorneys with decades of experience under their belt. This may make it easier for your beneficiaries in the event your will is contested in probate court.
Unfortunately, 35% of Americans don’t plan on discussing their inheritance plans with their family, according to a 2024 survey by Edward Jones in partnership with NEXT360 Partners and Morning Consult.
Jared’s father presumably did not explain to his stepchildren why he was leaving them out of the will. Without this conversation, the family must now follow what’s outlined on paper, according to Ramsey.
“Dad already clearly said what he wanted to have happen,” he told Jared. Cohost John Delony agreed: “Yes, behavior’s a language and he was loud and clear.”
With this in mind, both hosts encouraged Jared to turn down his stepsister’s request.
Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
