Family Disputes over Inheritance - Lincolnshire IL

 

Lets Talk about how to avoid Family Fights over inheritance.
By: Alan Orlowsky

An elderly woman on her deathbed has an estate worth $500,000. She has three children and a will stating each child will receive 33 percent of her assets after her death. The situation seems simple enough: the woman has a legal document in place, a will that contains specifics on how she wants her estate to be passed along to her children. The issue is according to some estate planning experts, this woman's death could kick off a long and expensive legal process that often turns ugly. Fights over inheritance can cause rifts in families that are sometimes impossible to heal.

"Family fights among children after death occurs in a large percentage of families" says Tim O'Sullivan, a partner and estate planning attorney at the Foulston Siefkin law firm. O'Sullivan went on to say "If the number 1 goal is to create family harmony, then the estate plan ought to be designed in a way that preserves it. It's so sad to see what happens in these situations."

To prevent this kind of conflict, more sophisticated legal arrangements are necessary. Even for people with modest wealth, advanced estate planning can help ease resentment during a painful time.

A will is essentially powerless until a family enters a process known as probate. Probate is essentially a set of procedural law that determines what happens to someone's property when they die. All heirs named in the will are part of the process, with the will serving as a guide for a judge to determine how assets should be allocated.

This process can differ from state to state, and can take up to a year to resolve. Additionally, the Probate process is public, meaning information that families might want to stay private becomes a matter of record. An attorney needs to be appointed to handle the procedure otherwise it can lead to family disputes and could be extremely costly. There is another option, revocable trusts. 

The Revocable Trust alternative:

A revocable trust is a less-complex method of estate planning. This trust is a contract that you make to establish an entity into which you transfer title of your assets, all in your name. If you should die, the trust does not die with you. A trustee is always appointed, often times an attorney who created the trust.

In this trust you can do anything you like. Once a trustee is named, he or she can divvy up assets based on wishes of the deceased family member. This has been referred as a "probate-avoidance tool" that largely removes the potential for family infighting.

To avoid conflict, you have to have a well written Will and a Trust, with an independent third party to oversee it. Ambiguity leads to conflict and if the trust is well thought out and well written conflict can be avoided.

With a will, the families fight about who gets what. With a trust, you stay out of the court. Additionally it can be more cost effective than just having a will.

If you have questions about this post or about a particular legal situation, please contact Alan Orlowsky by calling 847-325-5559 or visit our website at: www.orlowskywilson.com