Next in Line is a weekly newsletter for advisors, brought to you by Herbie, covering the practical yet consequential interaction between estate planning and family dynamics.
Mark and Linda Thompson are both in their 70s, and after decades of working, saving and investing, they've accumulated a comfortable net worth. Like many families, they have begun discussing a gifting strategy and their ultimate estate plan.
Mark and Linda have three children.
Sarah is a physician. She and her husband live comfortably and have accumulated substantial savings.
Brian owns a regional construction company.
Tom is a successful entrepreneur. Following the sale of a business, his net worth is pushing $100 million.
No one is struggling. In fact, everyone is doing great. But Tom simply doesn’t need more money.
And thus, a question has emerged that Mark and Linda never anticipated:
What is the right thing to do when one child is dramatically wealthier than the others?