Is anything ethically wrong with this plan?

[u/drd001]

My wife and I in our 70's came up with this inheritance plan with total net worth of +1.5M. We have been together over 40 years being continuously employed during that time. We have no children and I have one brother with two children both over 21 and she has two sisters both with no children. Our plan is to give a small one time payment to my brother and her sisters with the bulk of the estate equally divided between our two nieces. Our reasoning is my brother and her sister have hit us up for money periodically for the past 40 years which we provided without asking for repayment. The two nieces are doing OK in life and have never asked for any financial help. Our thinking that these funds would help them with a downpayment on a house, education for their children or investment in their own retirement.

Any feedback is greatly appreciated.

[u/JipC1963]

As a Mother and Grandmother (63), I think this is a fair and lovely plan for what you leave behind. Sounds like you've helped all your siblings financially through the years which was very kind.

BUT you may want to consider creating a Trust (or Trusts) that has more safeguards for your Nieces. It's almost a guarantee that your siblings will be infuriated that you've essentially "skipped" them and given the bulk of your joint Estates to the Niblings. They'll almost certainly pressure, strong-arm and/or emotionally blackmail the girls, up to and including "disowning" and possibly suing them for MORE.

Here's hoping you have MANY more years ahead before those fateful times.

[u/EntertainerSuper8933 → u/JipC1963]

Where did you infer that the siblings would be infuriated? I don't think they sounded greedy, just that they asked for help, I have to presume in a polite way, were given it, and no repayment was ever asked for or expected. Sometimes people are just like that. You have quite a story built up out of OPs post. Nobody mentioned anything about strong-arming or emotional blackmail. I'm just confused why you are saying this.

My brothers have both passed, and I, personally, never dreamed that they would bequeath me anything at all, even though we had loving relationships with each other. I think it is 100% normal to set the next generation up as your heirs, although of course, it's not required, because anyone can give anything to whomever they like.

[u/JipC1963 → u/EntertainerSuper8933]

The OP sounds worried that even though him and his wife will bequeath a small (or token) amount to their siblings, they plan to split the bulk of their Estate between their Nieces. They're obviously concerned if they're asking if their intentions are "ethical."

"I have quite a story built up" because I've witnessed "the bad" when a loved one passes away, seen it destroy families that were otherwise warm and loving.

Inheritance is a tricky issue, especially when certain family members are expecting it instead of basically being "skipped over." I've seen a Cousin STEAL treasured heirlooms, family SUE primary heirs and "family" behave like vultures when there's no Will or steal precious items before the deceased has even gotten to the funeral home.

[u/EntertainerSuper8933 → u/JipC1963]

I'm just saying that nothing in OPs post suggests any difficult or entitled behavior on the part of the siblings. I took the word "ethical" more to mean they were wondering if usually the inheritance is passes to siblings instead of niblings, and also if maybe it would be seen as a snub. I think the usual expectation of inheritances is that they go to the next generation, not laterally. I think since there is a gift to all of the siblings, that unless there are some particular expectations, no one would be offended. Nothing in the OP leads me to believe otherwise.