Strategies for Avoiding Family Conflicts Over Wills and Trusts

Estate Planning Failures Make Tragedies More Tragic

Proper estate planning is one of the most important decisions a person can take in their lifetime. From creating a will to placing assets into a trust, these steps can minimize the likelihood of disputes after you’re gone. Sadly, simple mistakes can lead to major issues. That’s why utilizing strategies for avoiding family conflicts over wills and trusts is absolutely critical.

While many people believe having these estate plan documents is enough, the reality is that disputes can still arise. In some instances, this can lead to litigation — and even result in your estate documents being declared invalid. This can make a tragic situation even worse. Fortunately, there are ways to minimize the likelihood of such outcomes.

Engage in Clear and Transparent Communication

Some of the biggest problems in life are caused by a lack of communication. This is just as true in estate planning as it is anywhere else. You should discuss your plans openly and set clear expectations for when you’re gone. No beneficiary or legal heir should be blindsided by what’s in your will or trust documents.

Explain to your beneficiaries and anyone who qualifies as a legal heir exactly why you’ve made certain decisions. If they understand your motivations and thought process, they’re less likely to have feelings of favoritism or resentment. Additionally, being open about your plans means you’ll have more witnesses of your intent should disputes arise.

Create a Detailed Estate Plan

One of the most important strategies for avoiding family conflicts over wills and trusts is to ensure your estate plan is clear and unambiguous. You should clearly outline how you want all assets distributed. If there’s any room for interpretation, it opens the door for disputes. You want there to be no chance that your intentions could be misread.

You should also address sentimental items and heirlooms. Many people forget to do this since these items often only have emotional value. Unfortunately, these constitute some of the most highly disputed items when a person dies. Make sure you leave specific instructions for who you want to receive your family’s most important items.

Choose a Trustworthy Executor or Trustee

Executors and trustees play vital roles when it comes to minimizing family disputes over wills and trusts. You want to choose someone trustworthy and impartial. This person should also be capable of managing family dynamics. You can choose family members, friends, trusted colleagues, or estate planning professionals to serve in these roles.

There are certain qualities you should look for in a trustee or executor:

• Integrity
• Organizational skills
• Financial literacy
• Communication skills
• Availability
• Impartiality

Each of these qualities is integral when choosing someone to carry out your wishes. Making the right choice can help you avoid family conflicts over wills and trusts when you’re gone. You should check state requirements since rules for who can serve in these roles vary by jurisdiction, and make sure to select alternates in case a problem arises.

Regularly Update Your Documents

Regularly updating your estate documents is an absolute necessity. Failing to do so could lead to intestate succession – where the state decides who gets assets. This could happen if there are updates to state law that render portions or the entirety of a will invalid. Partial intestacy is also a common outcome when new properties are acquired after the completion of a will.

Unfortunately, failing to update estate documents can also lead to disputes among family members. Your will should be updated after major events — such as births, deaths, marriages, or divorces — to ensure they reflect your current wishes and circumstances. Make sure to communicate any changes and their reasoning to your loved ones.

Include No-Contest Clauses

Even the most well-planned and best-intentioned estate plans are at risk of dispute. The simple reality is that certain individuals can contest your estate documents no matter what. Bad faith challenges are common. A solid estate plan minimizes the likelihood of such challenges succeeding, but no-contest clauses can reduce their occurrence altogether.

Including a no-contest clause in a will or trust means that anyone contesting the document may lose their inheritance. Before including such a provision in your will or trust, though, it’s important to understand state law. There are frequently specific requirements that must apply to such a challenge in order for it to trigger disinheritance.

Document Everything

In a perfect world, simply writing up an estate plan would be the best strategy for avoiding family conflicts over wills and trusts. Of course, this isn’t the case. However, documenting everything can help minimize such disputes. Maintain detailed records of your intentions and decisions, and document conversations where you explained your plans to others.

It’s also a good idea to write a letter of intent. This is a personal letter that accompanies your will or trust and clarifies your wishes and the reasoning behind your decisions. This will not have the legal force of your actual estate documents, but it does allow you to explain in non-legal terms what your intentions are. This can greatly minimize the risk of misunderstandings and disputes.

Hire an Estate Planning Attorney

The wide availability of do-it-yourself legal websites has led many people to attempt complex legal tasks by themselves. Unfortunately, this often leads to unexpected outcomes. Boilerplate forms online cannot account for your unique circumstances. Attempting to create an estate plan without professional assistance is a recipe for familial disputes.

Luckily, estate planning isn’t like other areas of the law. In many cases, you can secure asset protection for you and your loved ones on a flat fee basis. This means one of the most essential strategies for avoiding family conflicts over wills and trusts will minimize potential disputes and come with no financial surprises.

At Cava & Faulkner, our estate planning attorneys are here to guide you through this essential process. Contact us at 916-831-7565 to schedule your free consultation.