Leaving money to grandchildren - uneven split between siblings?

[BrummieMummie]

Am posting this on behalf of an elderly neighbour - I to my knowledge have no grandchildren yet!

Neighbour's children are both relatively financially secure and so after discussion with them she has decided to rewrite her will to split her estate between her grandchildren. Her DD has 3 children and her DS has 2. Would just like a straw poll as to what everyone thinks the "fairest" way to split this money.

a) Split equally between the 5 grandchildren
b) Split her DD's "half" 3 ways and her DS's "half" 2 ways

I know what I think but neither seems entirely "fair" iyswim.

TIA

Split equally between the 5 children

In the one instance I've seen this option b was taken. Option b was taken because the parent of the only child felt her child was missing out because she happened to have loads of cousins. it was all discussed in advance and everyone agreed.

I would think the best way would be to ask her kids as otherwise it could breed resentment whichever way she ends up picking!

In my mind if she is skipping a generation she needs to treat the 'new' generation fairly and split the money equally

What if another baby was born. Best to phrase it so that it is split equally between surviving grandchildren.

I'd go for (a)
I think this is what my Granny is doing.

Equally between all the grandchildren or equally between the 2 children.

I think that you just extend general policies so if all the grandchildren receive equal gifts on birthdays etc then they should get equal inheritances.

But yes agree that its probably best to discuss with the child who has less children first.

Equally between all 5. It's the only fair way.

If it goes direct to the grandchildren then I think it should be split equally between the grandchildren

Either leave it to her children and split it equally between them,

or leave it to her grandchildren and split it equally between them.

Split equally between the children, to do otherwise would be like leaving it to her own children but giving the one with more kids a bigger share which would be unfair.

In my family this was done, equally between all 7 grandchildren involved.

I don't think someone should be penalised for having siblings. ESP. As they will in the fullness of time get a smaller 'share' of their parents estates.

Split between the grandchildren fairly.

That's what I think is fair but I've actually advised my mum not to do this because of the epic fall out from my siblings because they have different numbers of children. I have 3 children as does my brother but my sisters have one and two children and would have a dicky fit. I don't care about the money, I just don't want the fallout.

Agree Alldirections - nothing makes people argue more than an inheritance!

She is obviously close to her kids to have discussed it in the first place - she should just say 'i'm planning to do a/b - is that ok with both of you?'

Interesting range of opinions here, thank you all.

The reasoning behind option b was I suppose that if the money was left to the neighbour's children intended for the benefit of the grandchildren (as is the case in the current will) then that would be split equally between the 2 DCs as opposed to the 5 GCs. I agree it seems unfair though but didn't know if I was just thinking that way as a mother of 3 DCs myself!

RedHelen All the grandchildren in question are late teenage and their mothers are late 40s/early 50s sort of age (don't know exactly) so I think another child is unlikely! Always possible though I suppose.

She has discussed it with her children and each of them is telling her to take the option which would advantage the other sibling as neither of them wants to unfairly disadvantage the other family.

An option c has also been proposed. Her DD is considerably better off financially than her DS (both in high flying city type jobs, naice house in London commuter belt etc as opposed to just fairly comfortably off) and the DD has suggested that perhaps the estate should be split 6 ways, with one share going to her brother and the other 5 to each of the grandchildren. This seems fairer in some ways and more unfair in others to her and so she is unsure. Any thoughts?

Is the DS the one with 2 or 3 children?

My great Uncle went for (a). Unfortunately he made his will before my youngest cousin was born, though died quite some years later. As beneficiaries we were asked to sign a deed of variation to ensure dcousin got an equal share. I'm sure had that not been an option the rest of us would make sure she didn't lose out.

I think splitting between the grandchildren, with the proviso that any further gc are to be included would be the fairest. But I really hate talking about anything like this.

Tilly The DS is the one with 2 children

Equally between the 5 grandchildren.

Given the suggestion I think the should just leave it to the children and then let them split it - then each child is receiving 3/6. her DS can keep 1/6 if he needs it and the grand kids all get gifted 1/6.

The DD's suggestion basically splits the money as in option b.

They should also consider the inheritance tax

I think the only fair way is actually b, that its split between the different children, but then divided up skipping a generation. It's the only way I have ever known it done, and I think its very unfair on the DS side that their half is reduced on skipping the generation because they have fewer children. So strange that everyone seems to take a different view from everyone I have ever known on this point.

My X's granny split the will 50% to children, 50% grandchildren or their decendentsin event of their early demise.

Would the inheritance tax be different depending on who she left the money to?

So that would essentially mean a, but the DS would get some money rather than splitting it equally between his children.

If she genuinely doesn't want to leave it to her own children because she feels the needs of the grandchildren are greater (not sure if this is the case) then maybe it should be split equally 5 ways? But I'm not really sure!

Let's hope she doesn't need to use it all to pay for care in her older age

Sorry, *mean b

Inheritance tax is on the estate before its divided