The following provides reasons why people may contest a will or trust and what your clients can do now to attempt to avoid conflict after they have passed away.
You care deeply about your clients. As an extra step, you can dig deeper and learn about your clients’ estate planning wishes and the dynamics of your clients’ families. The following scenarios may help you identify clients or prospects who could benefit from your insights and assistance:
- Clients and prospects whose families are already in conflict. If a client or prospect knows now that their family members do not get along, things will likely not change when the client or prospect passes away.
- Clients or prospects who have a loved one needing more support. When one person needs more assistance than another, it can be a breeding ground for resentment unless there is proper guidance and planning.
- Clients or prospects from a blended family. With varying types of relationships, clients or prospects must properly document their wishes so that everyone understands and can cope with the outcome.
Keeping Harmony In The Family
Only an experienced estate planning attorney should be trusted to create and maintain a client’s or prospect’s estate plan that can help preserve family harmony. The following are examples of when an estate plan can be challenged.
To challenge the validity of a will or trust, the challenger must have standing. The following types of individuals have potential standing:
- Disinherited or disadvantaged heirs-at-law
- Disinherited or disadvantaged beneficiaries
There are five grounds for someone to contest a will or trust:
- The will or trust was not signed as required by state law.
- The person making the will or trust lacked the necessary mental capacity.
- The person making the will or trust was unduly influenced into signing it.
- The will or trust was procured by fraud.
- The client’s or prospect’s signature on the will or trust was forged.
Sharing Is Caring!
Encouraging clients and prospects to share some information about their estate plans with their loved ones can be beneficial and create greater family harmony. At a minimum, letting their loved ones know that there is an estate plan and where to find the critical documents when the time comes can help alleviate some tension because they will know that the client or prospect has thought through what should happen and has made their wishes known in a legally enforceable way. If a client or prospect wants to share more details of their estate plan with loved ones, a family meeting can help ensure that everyone understands the plan and the reasoning behind it. With the drafting estate planning attorney present, questions can be answered in a supportive environment. Some clients also invite their financial advisor to provide asset details and to meet all key parties.
Disinheriting Is Not A Necessity!
A client or prospect does not have to resort to disinheriting a loved one who is inept at managing their money.
- If the client or prospect wants to protect the beneficiary’s inheritance without a great deal of restrictions, they can have the inheritance held by a trust and include terms that dictate when the beneficiary will receive their inheritance, such as at specific ages or if the beneficiary reaches certain milestones.
- Another way to protect a beneficiary’s inheritance is to create a discretionary trust that holds their inheritance and gives the trustee the power to give or use trust funds for the beneficiary at the trustee’s sole discretion.
Clients and prospects need to ensure that their estate plans stay up to date. Change happens, and it is important that they keep their documents updated so everyone will understand their current wishes.
Because of your role as the client’s or prospect’s financial advisor, certified public account, or insurance agent, you have likely been working with your clients for a long period of time. Your clients or prospects may feel more comfortable opening up to you about their concerns given the length and nature of your relationship.
