Tips to Avoid a Will or Trust Contest

Fighting over provisions in your will or trust can derail your final wishes, deplete your financial legacy, and tear your loved ones apart. However, with proper planning, you can help your family avoid a potentially disastrous fight.  

If you are concerned about challenges to your estate plan, consider:

1. Do not attempt to find do-it-yourself solutions. If you are concerned about a loved one contesting your estate plan, the last thing you want to do is attempt to write or update your will or trust on your own. Only an experienced estate planning attorney can help you create and maintain an estate plan that will discourage lawsuits, carry out your wishes, and ensure all legal formalities are followed. 

2. Let family members know about your estate plan. Regarding estate planning, secrecy breeds contempt. While it is unnecessary to let your family members know all the intimate details of your estate plan, let them know that you have created a plan that spells out your final wishes and whom they should contact if you cannot manage your affairs or die. If you want your family to know the key details of your plan, you can hold a family meeting with an estate planning attorney. 

A family meeting is a proactive way to ensure that your desired family members understand your estate plan and the decisions you have made. This transparency can help prevent misunderstandings, reduce the risk of disputes, and allow your loved ones to ask questions in a supportive environment. By addressing potential concerns in advance, you can foster clarity, alignment, and a smoother transition when the time comes.

Use discretionary trusts for problematic beneficiaries. You may feel you cannot leave a loved one an inheritance because of concerns they will squander it, use it in a manner that clashes with your beliefs, or spend it in a way that is harmful to them. However, there is an alternative to disinheriting someone. For example, you can require that the problematic beneficiary share in a lifetime discretionary trust. Name a neutral third party, such as a professional, lawyer, CPA, or trust company, as trustee. This will ensure that the beneficiary will receive their inheritance according to the terms you have dictated while keeping the money out of the hands of unintended parties, such as creditors or an ex-spouse.

You can also control who will inherit the trust balance if the beneficiary dies before the funds are distributed. Suppose you want fewer instructions or restrictions on your loved one’s inheritance. In that case, you can place it in a trust and leave instructions for distributions to be made at specific ages or upon attaining certain milestones. You can customize when and how they receive their inheritance. There is no requirement that your beneficiary receive their inheritance outright.

3. Keep your estate plan up to date. Estate planning is not a one-time transaction; it is an ongoing process. Update your estate plan as your circumstances change. An up-to-date estate plan shows that you have taken the time to review and revise it as your family and financial situations change. This will discourage challenges since your plan will encompass your current estate planning goals.

Following these tips will make your loved ones less likely to challenge your estate planning decisions and more inclined to fulfill your final wishes. If you are concerned about loved ones contesting your will or trust, call the attorneys at Altman & Associates at 301-468-3220 or via the website at altmanassociates.net.