Imagine that you are preparing your will and are trying to...

Imagine that you are preparing your will and are trying to decide how to divide your assets between your two grown children. Your daughter Tonya is a chemical engineer who earns a high income. Your son Terry opted out of college and went to work straight out of high school. Now Terry works in construction; he works just as hard as Tanya, but he is less affluent than she is. Elaborate on each of the following concepts about fairness and distribution illustrated in the chapter. a. Split your wealth evenly between Terry and Tonya, because you always treat them equally. b. Leave Terry your wealth to offset the income gap between him and his sister. c. Leave your money to the child who you think deserves more money. d. Tell your kids you'll leave your money to whoever does the most to take care of you in your old age.

Imagine that you are preparing your will and are trying to decide how to divide your assets between your two grown children. Your daughter Tonya is a chemical engineer who earns a high income. Your son Terry opted out of college and went to work straight out of high school. Now Terry works in construction; he works just as hard as Tanya, but he is less affluent than she is. Elaborate on each of the following concepts about fairness and distribution illustrated in the chapter.
a. Split your wealth evenly between Terry and Tonya, because you always treat them equally.
b. Leave Terry your wealth to offset the income gap between him and his sister.
c. Leave your money to the child who you think deserves more money.
d. Tell your kids you'll leave your money to whoever does the most to take care of you in your old age.

Key Concepts

Reciprocal or Contingency-Based Fairness

Reciprocal fairness involves linking the distribution of assets to future behaviors or obligations, such as providing care or support. Under this concept, the allocation is contingent upon the fulfillment of certain conditions, suggesting that those who are expected to contribute more through reciprocal actions, like taking care of someone in old age, may be rewarded accordingly.

Merit-based Distribution

Merit-based distribution is a principle where resources are allocated according to an individual’s achievements, efforts, or deservingness rather than on an equal or need-based basis. In this framework, rewards are tailored to reflect personal accomplishments, competencies, or contributions, with the belief that people who have earned more through their work or merit should receive a larger share.

Equality

Equality in distribution means treating all parties the same by providing each with an identical share, regardless of their individual circumstances, abilities, or needs. In the context of asset division, this concept implies that every beneficiary receives an equal portion of the estate, reflecting the principle that all individuals deserve the same consideration and opportunity without distinction.

Equity (Need-based Fairness)

Equity, particularly in its need-based form, involves adjusting the distribution of assets to account for differences among individuals, such as disparities in income or financial need. This approach aims to level the playing field by recognizing that certain individuals may require additional support to achieve comparable outcomes, thereby offsetting existing inequalities.

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