Have a Harmonious Family that Does Not Fight? You Still Need an Estate Plan

Last week, we shared tips for avoiding a will contest. In many families, everyone gets along, happily gathering for the holidays, sharing laughs, telling stories, and enjoying each other’s company. Then, the matriarch or patriarch dies. Suddenly, years of pent-up resentment and hurt feelings surface, and the once-happy family is now embroiled in litigation over the head of the family’s money and property. This is why whether you expect conflict or not, you still need an estate plan.

Having an Estate Plan Is Crucial to Your Family’s Success

When everyone is alive and happy, it is easy to think that nothing will break a family apart. Many people think that since everyone gets along, estate planning is unnecessary because everyone will look out for one another and do only what is fair. However, having a properly prepared estate plan is crucial. Failing to plan not only takes all the control out of your hands but can also leave hurt feelings and possible confusion over your true wishes. This confusion may force family members to pursue the only source available to resolve the misunderstanding: litigation in probate court.

Not Just Any Estate Plan Will Do

While a lack of planning can lead to disastrous consequences, poor planning can be just as harmful. Documents that are outdated, vague, or improperly prepared can lead family members to challenge them. Family members may have differing opinions about your intentions if your documents are unclear. This is especially unfortunate if you have a trust: one of the primary reasons to prepare a trust is to avoid court involvement. A trust contest, however, places your loved ones and the provisions in your trust under court scrutiny.

You May Be Able to Use a No-Contest Clause

If your documents are up-to-date and clearly state your intentions, but you worry that your decisions may displease your family, in some states you can include a no-contest clause that could help prevent or limit challenges to your will or trust. A no-contest clause is a provision that states that if a beneficiary contests your will or trust (whichever document contains the clause) and is unsuccessful, they will receive nothing. However, the effectiveness of no-contest clauses can vary by state, so if you think your family might contest your wishes, seeking an experienced estate planning attorney’s help is incredibly important.

A common situation where contests can arise is when someone is left out of the will or trust. If you want to disinherit a family member intentionally, you should discuss this with your attorney to discover the best ways to do that. We do not recommend leaving just one dollar, although that is a popular thing you might read on the internet. Instead, our attorney will talk to you about the situation to help make any future contest over that issue be less likely to succeed--or less likely to even happen. With a no-contest clause, if you leave enough to that person, the beneficiary has something to lose if their contest is unsuccessful, so this may discourage them from contesting your wishes in the first place. And if you want to completely disinherit them, we have other suggestions for helping make sure that works for you. However, as previously mentioned, you need to work with an experienced estate planning attorney to ensure that this strategy is best for you based on your state’s law and your family’s situation.

You Might Need an Estate Plan to Protect an Inheritance

Alternatively, if you are concerned about a beneficiary receiving money outright because of creditor issues, spending habits, etc., you need not disinherit or leave them out of your estate plan. Leaving money to a family member does not have to be an all-or-nothing decision. By utilizing a discretionary trust, you can set aside money for the individual to be distributed by a trustee when and how the trustee deems appropriate. If you do not want to put such tight restrictions on a beneficiary’s inheritance but still want a level of protection, you can have a beneficiary’s inheritance held in a trust and distributed to them at specific ages or when they reach certain milestones. You do not have to leave your loved one an inheritance outright without any requirements or stipulations.

Your Next Steps

You need an estate plan, one that is well-drafted and up-to-date because it is crucial regardless of your family situation. Will or trust contests can be costly and quickly drain what you want to leave behind for your loved ones. We can assist you in creating an estate plan that will ensure that your wishes are carried out and that harmony can be maintained within your family after you are gone. Call us today to schedule an appointment.