MarketWatch: 1 in 3 parents plan to divide the inheritance unequally among their kids

Parents might assume that splitting everything down the middle is the fairest way they can divvy up assets for their children — but being equal and fair aren’t the same thing.

Bequeathing assets equally among one’s children might seem like the easiest and most commonplace method when planning an inheritance, but a study from the National Bureau of Economic Research reveals that more than one-third of parents divide their estates unequally. What’s more, a journal article in Social Forces published in 2026 shows that wealthier families are more likely to divide assets unequally as a strategy to preserve economic legacy through generations.

“Equal and fair are not always the same thing, and treating everyone identically may not reflect what is actually fair for your family. One child may have greater financial needs while another may already be financially secure or may have received significant support during your lifetime,” says Michele Muldoon, partner at Brockstedt Mandalas Federico where she focuses on estates and trusts, elder law and estate planning.

“The goal should not simply be to divide everything into equal pieces but to make an intentional decision that reflects your values, your family’s circumstances and the legacy you want to leave behind,” she says. Here’s how to decide how to divvy up your inheritance to your kids.

Consider enlisting the pros to help

To do this successfully, it’s important to work with a team of professionals who can hold your hand through the process. An estate attorney is a must (visit the Martindale-Hubbell law directory to search for estate planning lawyers by location and expertise) and you might want to work with a financial planner as well.

Consider a CFP®, as they have completed extensive education requirements, passed exams, performed thousands of hours of work-related experience and uphold a fiduciary duty, meaning they put their clients’ best interests first. (You can use this free tool to get matched with fiduciary advisers from our ad partner SmartAsset, as well as CFP Board and NAPFA.)

Know that there isn’t a single “right” way to do this

It’s important to note that there is no universally right way to divide an inheritance, says Eric Wiegand, certified financial planner® and senior wealth adviser at River Wealth Advisors. Parents often default to equal division because it’s simple and a less conflict-prone option. “To the children, it can signal impartiality and can reduce accusations of favoritism. Many people default to it precisely because it will be seen as a neutral outcome by the children,” says financial adviser Matt Sotir at Highland Financial Group with Equitable Advisors.

Indeed, “the right approach is to first understand the family’s goals, circumstances and financial needs, then determine how the inheritance can best accomplish those goals,” says Muldoon.

Be specific — and share your plans while you’re still alive

For her part, Christine Walker-Bowman, executive vice president and chief operations officer of Farmers and Merchants Trust Company, says while there isn’t one right way to do this, a few approaches consistently help. “The first is being specific in the documents. A lot of the conflict I see traces back to language that two children can interpret in different ways and both be right in their own heads. The second is to tell your children about the plan while the parents are living. You don’t necessarily have to mention dollar figures, but it’s important to minimize surprise because that’s usually what does the most damage,” says Walker-Bowman.

For plans that are unequal, Walker-Bowman says they tend to work best when it’s explained in person rather than discovered later in a document. “What divides families isn’t always the number. Sometimes it’s the silence or ambiguity shrouding the numbers,” says Walker-Bowman.

Look at the big picture

When deciding how to divide an inheritance, Muldoon recommends starting by looking at the bigger picture. “Consider each beneficiary’s financial circumstances, any prior gifts or support, the nature and value of the assets and the goals of the person creating the estate plan. Families should also consider whether certain assets such as a home or family business make more sense staying with a particular beneficiary as well as any tax or practical considerations,” says Muldoon.

Taxes matter

Walker-Bowman says it’s also important to note that taxes matter more than people expect. “A million in a traditional IRA and a million in a taxable brokerage account aren’t the same inheritance. The person inheriting the IRA owes ordinary income tax on the withdrawals and usually has to empty the account within 10 years, while the brokerage account gets a step-up in basis at death, so it can be sold with little or no tax,” says Walker-Bowman.

Know when unequal could be better

Sotir says there are significant reasons why unequal distribution is reasonable or even preferable: “[If] one heir has significantly greater financial need, a disability, special needs, is experiencing single parenthood or has limited earning capacity. If one heir provided substantial unpaid caregiving or financial support to parents over the years. If previous lifetime gifts or loans already skewed the distribution — such as when one child received help buying a house or starting a business or if the estate includes unique assets like artwork, jewelry, a farm or vacation house that cannot be cleanly split without destroying value, so one heir receives the asset and others receive compensating cash or other property,” says Sotir.

Kate Duffy, senior wealth adviser at Bryn Mawr Trust Advisors, says “money is math,” but it’s also an emotionally charged symbol. “Many people try to keep things simple by dividing their estate equally among their heirs. That’s the mathematical part of the equation. When children have different circumstances, needs or levels of responsibility, equality is not always equitable. An equal division without context can leave family members questioning your intentions and that’s often where family disharmony begins, precisely what you were trying to avoid in the first place,” says Duffy.

Give while you’re alive too

“It’s also important to recognize that inheritance doesn’t always happen at death. Many successful families want to see the impact of their wealth during their lifetime, and increasingly, inheritance happens in real time when needs are most unequal,” says Wiegand.

Be intentional

Something else to consider is that the goal is not mathematical equality, according to Wiegand. “Equal is a math problem. Fairness is a family conversation. The goal is intentionality. The most successful plans help families use wealth to create opportunity while preserving fairness, responsibility and family harmony,” he notes.

Other things to consider

Monish Verma, founder and CEO of Vardhan Wealth Management, says if you’re going to divide your wealth unevenly, consider splitting your existing wealth equally and make up the difference with life insurance. “That way, the children feel they each received 50% of mom and dad’s wealth while the child who needed additional assistance receives extra money that did not come out of the other child’s pot,” says Verma.

Revisit the plan

For his part, Sotir recommends, “If a client is considering unequal distributions, let your children know your reasons why, while you are alive. Hearing it from you directly will often give the children a better understanding of your decision and rationale, rather than if they read about this decision after you have passed. It’s also important to remember that the assets belong to the parents and they are entitled to distribute them however they feel is appropriate.”

Above all, Muldoon says the plan should be intentional, clearly communicated when appropriate and revisited whenever life circumstances change.

Source: Wolfson, Alisa. “1 in 3 parents plan to divide the inheritance unequally among their kids — and, frankly, that could be a smart way to do it, pros say.”, August 26, 2026. https://www.marketwatch.com/picks/1-in-3-parents-plan-to-divide-the-inheritance-unequally-among-their-kids-and-frankly-that-could-be-a-smart-way-to-do-it-pros-say-e4db4ab5?mod=alisa-wolfson

Disclosure: This article is being shared for educational purposes only. It is authored by a third party, and the opinions expressed are solely those of the author and quoted sources. The information does not constitute personalized investment advice, legal advice, tax advice, or a recommendation regarding any particular estate planning, wealth transfer, or financial strategy.

Estate and inheritance planning decisions should be made based on an individual's unique objectives, financial circumstances, family situation, and risk considerations. Any references to potential benefits, outcomes, or planning approaches are general in nature and may not be applicable in all situations. There can be no assurance that any strategy will achieve its intended results.

River Wealth Advisors does not provide legal or tax advice. Please consult your attorney, accountant, or other qualified professional regarding your specific circumstances. For additional information about our advisory services, please refer to our current Form ADV, available at https://www.riverwealthadvisors.com/policies-disclosures.