Splitting Heirs: Strategies for Estate Planning

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One common question I ask all of my clients is who they intend to inherit when they die. The answer to this question varies but the options are nearly endless. 

Many will give their children equal shares. This matches current Utah state law when there is no surviving spouse, no properly executed will, and no other estate planning documents.

Others have specific gifts in mind for each child. On a small scale this can work well. On a large scale significant problems may occur. For example I have seen farmers give specific plots of land or homes to each child. Prior to death, the farmer will end up selling some of that property. 

Unfortunately for the child listed as the recipient of the property, there is now nothing left to give them for their inheritance. Other inequitable issues may arise when the value of a particular property increases significantly faster than the others. If one of your properties were to have oil discovered it might suddenly be worth millions compared to the others, making one gift extremely valuable and leaving the other heirs far behind. 

When a client intends to give differing values to each of their children based on a variety of circumstances, I will always bring up the option of giving each child a specific percentage of the entire estate. This option is straightforward and easily accomplished by the liquidation of the assets, assuming no one wants to live in a particular home or own a particular property. 

In the event that two heirs desire ownership of the same property, a simple game of chance such as choosing a number out of a hat is always an option. The winner gets the property and the list gets other property of equal value.

It is not uncommon for someone in their final years to find it necessary to liquidate some of their assets to pay for their growing medical costs and changing housing needs. In that case percentages are going to be most helpful in dividing up whatever’s left at the end of your life. 

On occasion some of my clients will find themselves with more money then can be passed on to their heirs without paying a significant federal estate tax. Currently you can give almost 13 million to your heirs tax-free. This limit is for one giver, so if givers are married this limit is doubled to almost 26 million. 

Unfortunately, in 2026, the Bill in Congress that created this high limit will expire. At that point the new limit will be approximately five to seven million dollars per person. It is expected that Congress will convene prior to that expiration and extend the limit to something similar or even greater than the 13 million. But there’s no way to be sure, so it’s wise to plan ahead and be prepared. 

One option for those who don’t want to pay up to 40% of their excess funds in taxes at their death is to avoid dispersing those excess funds directly to heirs. Instead, the funds may remain in Trust for a significant period of time. In the state of Utah, Trusts can last up to 1,000 years. During this period, trust funds may be used to care for the needs of your loved ones without distributing the funds directly to them. 

This is one reason that large estates with mansions exist, where family members may reside and use resources without ever having ownership of the property or the resources. The trust simply continues to own the property and no taxes are due. (Except in cases where there is annual accrued income to the Trust.)

In cases where assets exceed the maximum federal estate limit, many estates are managed by a private advisor. The cost for doing this is sometimes as much as 1% of the entire estate. 

Another option is to give a portion of the assets to charity. This type of gift, when going to an organization that qualifies as a charity under the Federal tax code, will not be included in the calculation of the entire estate. Gifts like these might go to a church or University or other organization that shares values with the giver. 

On occasion my clients will consider creating their own charity. If created successfully, this charity can have many purposes including paying for needs that align with family members and heirs. A charity might pay for college expenses of a particular group that includes your children and grandchildren. If you live in a small town, the charity could pay for college expenses of all the children in the town with a high enough grade point average or ACT test score. 

If most or all of your children and grandchildren live in that town (or county) then they can access those funds merely by meeting whatever requirements you place on the fund. Some funds merely pay out to those who apply based on living in a particular place or having a particular ancestry. 

There are many ways to deal with the limitations placed by the federal government on the total estate passed on to your heirs. Some answers can be quite creative. If someone who is single wishes to pass on more than 13 million dollars they could choose to get married for no other reason other than so their spouse could pass on an additional 13 million. 

This option includes the risk of the spouse choosing to give some of those funds to someone other than those you intended, however there are ways to make those gifts together in documents such as an irrevocable trust that could successfully pass on those funds after your death and before the death of your spouse. 

Some choose to make no gift to their children due to lack of need or lack of connection with those children, but instead give the entire estate to the next generation. This gift is normally withheld from individual heirs until they reach the appropriate age chosen by the creator of the trust. 

Prior to the gift being made, those funds can be held in trust and invested and grow, increasing the gift when the appropriate time arrives. The gift can also be given slowly over time with approval by the current trustee managing the trust to pay for appropriate costs such as school, housing, missionary service or any other needs approved by the creator of the trust.

You will only have one opportunity to disperse your assets at death. Any errors may cost your heirs time and money that could have been avoided with the help of a competent attorney. Give Prigmore Law a call today to set up a free consultation to discuss your specific situation and identify your best options. 


THIS ARTICLE DISCUSSED GENERAL PRINCIPLES OF LAW. PLEASE DO NOT TAKE ACTION BASED ON THIS ARTICLE ALONE. ONLY AN ATTORNEY CAN DISCUSS YOUR SPECIFIC SITUATION WITH YOU AND THEN HELP YOU DETERMINE YOUR BEST COURSE OF ACTION.

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One common question I ask all of my clients is who they intend to inherit when they die. The answer to this question varies but the options are nearly endless. 

Many will give their children equal shares. This matches current Utah state law when there is no surviving spouse, no properly executed will, and no other estate planning documents.

Others have specific gifts in mind for each child. On a small scale this can work well. On a large scale significant problems may occur. For example I have seen farmers give specific plots of land or homes to each child. Prior to death, the farmer will end up selling some of that property. 

Unfortunately for the child listed as the recipient of the property, there is now nothing left to give them for their inheritance. Other inequitable issues may arise when the value of a particular property increases significantly faster than the others. If one of your properties were to have oil discovered it might suddenly be worth millions compared to the others, making one gift extremely valuable and leaving the other heirs far behind. 

When a client intends to give differing values to each of their children based on a variety of circumstances, I will always bring up the option of giving each child a specific percentage of the entire estate. This option is straightforward and easily accomplished by the liquidation of the assets, assuming no one wants to live in a particular home or own a particular property. 

In the event that two heirs desire ownership of the same property, a simple game of chance such as choosing a number out of a hat is always an option. The winner gets the property and the list gets other property of equal value.

It is not uncommon for someone in their final years to find it necessary to liquidate some of their assets to pay for their growing medical costs and changing housing needs. In that case percentages are going to be most helpful in dividing up whatever’s left at the end of your life. 

On occasion some of my clients will find themselves with more money then can be passed on to their heirs without paying a significant federal estate tax. Currently you can give almost 13 million to your heirs tax-free. This limit is for one giver, so if givers are married this limit is doubled to almost 26 million. 

Unfortunately, in 2026, the Bill in Congress that created this high limit will expire. At that point the new limit will be approximately five to seven million dollars per person. It is expected that Congress will convene prior to that expiration and extend the limit to something similar or even greater than the 13 million. But there’s no way to be sure, so it’s wise to plan ahead and be prepared. 

One option for those who don’t want to pay up to 40% of their excess funds in taxes at their death is to avoid dispersing those excess funds directly to heirs. Instead, the funds may remain in Trust for a significant period of time. In the state of Utah, Trusts can last up to 1,000 years. During this period, trust funds may be used to care for the needs of your loved ones without distributing the funds directly to them. 

This is one reason that large estates with mansions exist, where family members may reside and use resources without ever having ownership of the property or the resources. The trust simply continues to own the property and no taxes are due. (Except in cases where there is annual accrued income to the Trust.)

In cases where assets exceed the maximum federal estate limit, many estates are managed by a private advisor. The cost for doing this is sometimes as much as 1% of the entire estate. 

Another option is to give a portion of the assets to charity. This type of gift, when going to an organization that qualifies as a charity under the Federal tax code, will not be included in the calculation of the entire estate. Gifts like these might go to a church or University or other organization that shares values with the giver. 

On occasion my clients will consider creating their own charity. If created successfully, this charity can have many purposes including paying for needs that align with family members and heirs. A charity might pay for college expenses of a particular group that includes your children and grandchildren. If you live in a small town, the charity could pay for college expenses of all the children in the town with a high enough grade point average or ACT test score. 

If most or all of your children and grandchildren live in that town (or county) then they can access those funds merely by meeting whatever requirements you place on the fund. Some funds merely pay out to those who apply based on living in a particular place or having a particular ancestry. 

There are many ways to deal with the limitations placed by the federal government on the total estate passed on to your heirs. Some answers can be quite creative. If someone who is single wishes to pass on more than 13 million dollars they could choose to get married for no other reason other than so their spouse could pass on an additional 13 million. 

This option includes the risk of the spouse choosing to give some of those funds to someone other than those you intended, however there are ways to make those gifts together in documents such as an irrevocable trust that could successfully pass on those funds after your death and before the death of your spouse. 

Some choose to make no gift to their children due to lack of need or lack of connection with those children, but instead give the entire estate to the next generation. This gift is normally withheld from individual heirs until they reach the appropriate age chosen by the creator of the trust. 

Prior to the gift being made, those funds can be held in trust and invested and grow, increasing the gift when the appropriate time arrives. The gift can also be given slowly over time with approval by the current trustee managing the trust to pay for appropriate costs such as school, housing, missionary service or any other needs approved by the creator of the trust.

You will only have one opportunity to disperse your assets at death. Any errors may cost your heirs time and money that could have been avoided with the help of a competent attorney. Give Prigmore Law a call today to set up a free consultation to discuss your specific situation and identify your best options. 


THIS ARTICLE DISCUSSED GENERAL PRINCIPLES OF LAW. PLEASE DO NOT TAKE ACTION BASED ON THIS ARTICLE ALONE. ONLY AN ATTORNEY CAN DISCUSS YOUR SPECIFIC SITUATION WITH YOU AND THEN HELP YOU DETERMINE YOUR BEST COURSE OF ACTION.

Ken Prigmore
Ken Prigmorehttps://www.prigmorelaw.com/
Ken has been a Utah attorney since 2006. With many years of experience in handling Wills, Trusts, and Probate, Ken can help his clients avoid probate and pass on assets to their children without any courtroom drama. Ken is happy to educate others on the pitfalls of estate planning. "It doesn't matter what you know about Wills and Trusts, it's what you don't know that's going to hurt you and your family." When away from the office, Ken likes to spend time with his family.

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