Estate planning allows an individual to determine the fate
of their assets following their death or incapacitation. Proper preparation for
the future will ensure that your property is used as intended by your chosen
beneficiaries. However, if you are careless, your money, real estate, and
valuables could be points of contention in your family.
Keep in mind that irresponsible estate planning practices
will increase strife in the family. They could also promote the chances of will
contests after your demise. If you are concerned about potential rivalries and
disputes, use these tips to minimize the risks.
Update the Legal Will
The will is the most critical document for communicating
your wishes to family and other loved ones. However, the potential beneficiaries
can deny its validity if it does not match their expectations and your
lifestyle. Keep in mind that some people write wills and forget about
them for years. This practice leaves the wishes outlined open to a
contest.
Wills must be updated regularly. You can choose an
appropriate interval of a couple of years, but reviewing the documents after
major events in the family is more appropriate. For instance, births, deaths,
marriages, and relocations have a significant impact on a person's life. Also,
consider major changes to your finances.
Inform Beneficiaries
Informing your family members about your will is beneficial.
This practice is not legally required, but the details can prevent disputes.
Keep in mind that family members, especially children, reject and contest wills
because they cannot understand the logic behind the decisions. If they deem the
document unfair, they will challenge it in court.
Sharing information is a great tool for managing
expectations. Discuss your will details with critical beneficiaries like your
spouse and children. If you update the will, inform them to avoid the use of
the old will in the contest of the validity of the new one. If you have an
executor outside the family, contact them after updating the document.
Consider Your Accounts
The will is not the only critical document that will protect
your dependents and other family members when you die. You can provide for your
loved ones by designating beneficiaries for your critical accounts. This direct
designation of a next of kin will eliminate inheritance complications.
Moreover, probate is not imposed in this type of setup.
The lack of probate eliminates the risk of your will being
superseded, so the beneficiary will be protected. For example, annuities, life
insurance, and retirement accounts allow for the direct designation of the fate
of property by filling in the beneficiary forms. As a precaution, name a
contingent beneficiary for each account in case the primary one is unavailable.
Choose an Objective Executor
The executor of the will is a critical individual
in estate planning because they are responsible for reviewing the will and
following the wishes of the departed, including distributing the assets. It is
common practice for people to choose a family member as the executor because of
the convenience and assumption of a strong sense of duty to the family.
In some cases, this decision is right. However, the
designation of a family member as an executor can fuel rivalry and increase the
risk of the beneficiaries contesting the terms of the will. For example, if you
choose one of your children, the others might see it as a sign of favoritism.
This assumption might increase any hostility.
You can prevent these issues by naming a professional and
objective executor of the estate. This person will have no personal or legal
stake in the inheritance matters, so any disagreements related to the role will
be eliminated.
Effective estate planning requires extensive planning and
management of countless legal and familial factors. If you are struggling with
the process, contact
us at The Law Office of Carla D. Allen for counsel.
