How to be Fair to Your Children in Your Estate Plan

Written By Jillian Mastroianni

What happens when you give one child a house during your lifetime but want to keep your estate plan “equal” later? In this Tuesday Triage episode, Jill answers a listener question about lifetime gifts, equalizing inheritances, and how beneficiary designations can complicate even the best intentions. Through practical examples, Michigan law, and a real court case, this episode explains why documentation matters when fairness between children is at stake.

What You’ll Learn in This Episode

  • A lifetime gift to one child does not automatically count toward that child’s inheritance.

  • In Michigan, when a person has a Will, this concept is called ademption by satisfaction.

  • For a lifetime gift to count toward inheritance, there must be written evidence of intent.

  • That writing can come from: (i) the Will itself, (ii) contemporaneous written statement by the parent, and (iii) written acknowledgment by the child receiving the gift

  • Beneficiary designations override the Will, which can make equalization difficult.

  • Equalization clauses in a Will generally cannot control non-probate assets.

  • One strategy to allow equalization is to name the estate as beneficiary of certain accounts, bringing them under the Will’s control.

  • The value of a lifetime gift is typically measured when the recipient receives it, not at death.

  • Appreciation and the time value of money can make “equal” distributions feel unequal later.

  • Clear documentation helps prevent family conflict and litigation.

Resources & Links

Sample provision equalization clause: https://drive.google.com/file/d/1sl10acDgZ9hxhwxJGHO17NYbB9DE633A/view?usp=drivesdk 

Episode 59: Why Selling the Lake House Can Rewrite Your Will: https://www.deathreadiness.com/podcast/59 

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Jillian Mastroianni
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