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Home Common Sense How To Divide Inheritance Between Siblings: A Step-By-Step Guide

How To Divide Inheritance Between Siblings: A Step-By-Step Guide

by Celia
Inheritance

When a loved one passes away, the issue of inheritance often comes to the forefront. For siblings, dividing the inheritance of an estate can sometimes be a complicated and emotional process. This article will guide you through the key steps and considerations for dividing inheritance between siblings, ensuring that everyone understands their rights and options.

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Understanding Inheritance Laws

Before diving into the division process, it’s important to first understand the basic principles of inheritance law. In the United States, inheritance laws vary by state, and whether or not there is a valid will can significantly influence the distribution process.

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With a Will: If the deceased person left a valid will, the estate will typically be distributed according to the wishes outlined in the will. The executor, who is named in the will, is responsible for ensuring that the inheritance is divided as the deceased intended.

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Without a Will: In cases where there is no will, the estate is considered “intestate,” and the state’s laws of intestate succession will govern how the inheritance is divided. In most states, siblings are considered legal heirs if there is no surviving spouse or children.

Regardless of whether there is a will, the estate must first go through a legal process called probate, during which the assets are identified, debts are settled, and the estate is distributed.

The Role of Probate

What is Probate?

Probate is the legal process by which a deceased person’s estate is administered. The process ensures that debts are paid and assets are distributed according to the will or state law. The probate court supervises the administration, ensuring that the assets are divided properly among heirs.

Executor or Administrator: If there is a will, the executor is responsible for managing the estate throughout probate. If there is no will, the court will appoint an administrator, who may be one of the siblings or another relative.

Validating the Will: If a will exists, the probate court will first determine whether it is valid. This involves confirming that the document is legally sound and reflects the wishes of the deceased.

Distributing Assets: After debts and taxes are paid, the remaining estate will be divided according to the will (if one exists) or, if not, according to the laws of intestate succession.

Key Considerations in Dividing Inheritance

Dividing inheritance between siblings may seem straightforward, but various factors need to be taken into account to ensure the process is fair and smooth.

1. The Will’s Instructions

If the deceased person left a clear will, it should specify how the estate is to be divided. It may allocate specific assets (e.g., family heirlooms, properties, or financial accounts) to individual siblings or provide a percentage of the total estate. If the will outlines these wishes, they should generally be followed unless there is a legal reason not to (e.g., the will is contested or found to be invalid).

2. Intestate Succession

If there is no will, the state’s intestate succession laws will dictate how the inheritance is divided. In most states, if both parents are deceased, the siblings will typically inherit the estate in equal shares. The assets may be divided equally, unless there is an agreement between the siblings or a legal challenge to the distribution.

3. Special Family Dynamics

Sometimes, siblings may have different ideas about what’s fair when dividing an inheritance. Disputes can arise, especially if one sibling believes they should receive a larger share due to contributions made to the care of the deceased or other familial dynamics.

It’s common for one sibling to have lived with or cared for the deceased, which might influence their expectations regarding inheritance. Alternatively, one sibling might have received financial support or gifts during the deceased’s life, which may be considered when dividing the estate.

4. Liquidating Assets

Some estates may include illiquid assets such as property, family businesses, or collectibles, which can complicate the division process. If the siblings agree to sell the assets, the proceeds can be divided equally. However, some siblings may want to keep certain assets for sentimental reasons, which could lead to disagreements.

5. Paying Debts and Taxes

Before dividing any assets, the estate must pay its debts, including funeral costs, medical bills, and any remaining taxes owed by the deceased. This is where the role of the executor or administrator comes in. Once all debts and taxes are settled, the remaining assets can be divided between the siblings.

The Process of Dividing Inheritance

1. Asset Valuation

The first step in dividing the inheritance is determining the value of the estate. This involves identifying and appraising all assets, such as real estate, bank accounts, personal belongings, and investments. A professional appraiser might be hired to ensure an accurate valuation of certain items, such as jewelry, antiques, or real estate.

2. Equal Distribution or Agreement

Once the value of the estate is established, the next step is dividing it among the siblings. If the deceased left specific instructions in their will, those directions should be followed. In the absence of such instructions, the siblings can negotiate among themselves or rely on the state’s laws for equal distribution.

Negotiating a Fair Division: If the siblings disagree on how to divide the inheritance, mediation or legal assistance may be helpful in reaching a resolution. Sometimes, one sibling may take on more of the responsibility for certain assets (like property maintenance or keeping a family heirloom), and in exchange, they might receive a larger share.

3. Drafting an Agreement

To avoid future disputes, it may be helpful for siblings to put their agreement in writing. This legal document should outline the specifics of how the estate will be divided and the agreed-upon distribution of each asset. If necessary, a lawyer can draft this agreement to ensure it complies with all legal requirements.

4. Finalizing the Distribution

Once the division is agreed upon, the estate’s assets can be distributed according to the terms of the will or the intestate succession laws. If there are disputes that cannot be resolved, siblings may need to seek the assistance of a probate court to make a final ruling on the division.

5. Common Issues That Arise in Inheritance Division

Emotional Tensions: Dividing an inheritance among siblings can often trigger emotional conflicts. Past family issues, resentment, or differences in expectations can lead to tension. It is crucial for siblings to communicate openly and, if necessary, seek professional help to work through any emotional challenges.

Contested Wills: A sibling may contest the validity of a will if they believe it was forged, altered, or made under duress. This can complicate the division of the estate and extend the probate process.

Disparity in Contributions: If one sibling has contributed more to the care or support of the deceased, they may feel entitled to a larger share of the estate. This issue can sometimes be addressed by including specific provisions in the will or through negotiations.

Conclusion

Dividing inheritance between siblings can be a complex process, especially if there are disputes or if the estate includes both liquid and illiquid assets. Whether following the deceased’s will or relying on state laws, clear communication, fairness, and, in some cases, legal guidance are crucial for a successful resolution. By understanding the steps involved, siblings can navigate the process with less conflict and more clarity.

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