If the client is making a more substantial bequest, then the bequest should be made with no editorializing and accompanied by an in terrorem clause. The intended result of an in terorem clause may not be available for minor children. A minor will be represented by either a guardian or personal fiduciary. The concept of creating a sword and a shield with a bequest and the in terrorem clause may not act as a disincentive to challenging the will or trust. The personal fiduciary may regard it as his or her obligation to make the challenge.
Trusts then become the vehicle of choice.
The planner and client should consider leaving the funds to minor children in trust, with specific directions concerning the use of the funds. Estate Tax Burden . A planner and his or her client should understand the burden of estate taxes and set it forth in the document. Taxes can be allocated against those beneficiaries who caused the tax, or taxes can be allocated pro rata among all beneficiaries. The spousal amount can be a determined amount, without any burden to pay estate taxes.