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The main purpose of an estate plan is to leave beneficiaries with wealth. However, estate plans may also leave behind something else – something that no one wants: Arguments. If estate planners are not careful, they may spark lasting disputes between their survivors. These conflicts can cause bitterness, resentment, and decades-long rifts between family members. A more strategic approach to estate planning can prevent these arguments, and this may be something an estate planning law firm in Cleveland, Ohio can assist with.
In order to create an estate plan that prevents family conflicts, one must first understand why these arguments happen. Family dynamics are complex, and the death of a loved one can spark all kinds of disputes. That being said, a few conflicts are particularly common in this situation:
An estate plan that lacks specificity often leads to family conflicts. As a general rule, it helps to be as specific as possible when referring to certain assets. Vague or unclear estate plans leave plenty of room for interpretation, and different family members may draw different conclusions from unspecific wording. For example, a decedent might leave behind all of their personal possessions to their son and all their precious metals to their daughter. What category does a collection of gold jewelry fall into? A son might think this counts as a personal possession, while the daughter may argue that jewelry is a precious metal. Avoid making sweeping statements that group together various assets in vaguely defined categories. Instead, address each specific asset to the greatest extent possible.
When addressing specific assets, take a moment to consider their sentimental value to certain family members. Some beneficiaries may value certain assets more than others. For example, a daughter might be averse to guns – and she may decide to melt down a firearm inherited in Ohio. In contrast, a son may place greater sentimental value on this item – and he may feel shocked to see it destroyed. These situations can easily spark disputes, and it makes sense to set aside certain assets for the beneficiaries who actually value them. This is a positive strategy even if the asset seems worthless at first glance. Something as simple as a mug may have special meaning to certain family members.
Another potential source of conflict is a financially irresponsible beneficiary. These individuals may waste their inheritance within mere months – perhaps squandering it on addictions, gambling, and terrible investments. Not only does this destroy generational wealth within a family, but it can also cause disputes between beneficiaries. This waste may be highly distressing for other beneficiaries who can only watch as the family fortune evaporates before their eyes.
An effective estate plan can address this concern. One strategy involves a trust with various conditions that prevent financial waste. An incentive trust may only release funds when beneficiaries complete substance abuse treatment programs. A simpler option is a spendthrift trust, which releases funds gradually. These “drip-feed” distributions prevent a beneficiary from wasting their inheritance all at once – while still providing financial security.
Estate planners may also choose to “disown” certain family members who demonstrate financial irresponsibility, substance abuse, or poor behavior. Although these decisions are often understandable, they often lead to estate planning disputes. When a family member discovers they have been removed from a Will or trust, they may decide to take legal action. A contested Will can be an expensive, time-consuming, and stressful process for the entire family. Disowned family members often try to contest Wills on the grounds of forgery, mental incapacity, or undue influence in Ohio. If the plan is to disown a family member, a cautious approach makes the most sense when drafting the Will. Rhodium Law, LLC may be able to help eliminate potential opportunities to question the validity of the Will.
To prevent a contested Will, consider alternatives to disownment. Family members are less likely to contest Wills if they receive at least some kind of inheritance instead of being removed entirely. That being said, disputes often arise among family members (especially siblings) who receive unequal distributions. Instead of providing one beneficiary with less, consider a more complex arrangement using a trust. Conditions may restrict their inheritance without actually reducing it – creating the same net effect as disownment. For example, the family member may receive their inheritance decades after other beneficiaries. They may also receive drip-feed distributions, or they may have to meet extremely challenging conditions before inheriting their share. These strategies could reduce the chances of a contested Will.
Although it is easy to focus on complex trusts, relatively simple estate planning strategies can also prevent family conflicts. Perhaps the most obvious way to avoid these disputes is to create a Last Will and Testament. According to the American Association of Retired Persons (AARP), about 60% of all Americans do not have Wills. Those who die without Wills force their families to go through a process of “intestate succession.” During this process, the Cuyahoga County Probate Court will arbitrarily distribute assets according to a pre-set formula called “intestate succession.” Certain family members will likely receive most of the wealth, while others may receive nothing.
If an Ohio resident dies intestate, they may cause lasting bitterness and resentment among their family members. These loved ones might wonder why the decedent did not go through the simple process of creating a Will, especially if they felt entitled to some of the wealth. In worst-case scenarios, the wealth may pass to distant, estranged family members – and not the people the decedent cared about most.
Wealth transfer is only one aspect of a successful estate plan. Instead of focusing solely on the numbers, Ohio residents might consider a more human approach that addresses the emotions and nuances of interfamilial relationships. Various strategies can help limit conflicts, and residents may want to discuss these options alongside experienced Ohio estate planning attorneys. An effective estate plan can leave behind not only wealth, but also a sense of harmony within the family. To continue this conversation alongside Rhodium Law, LLC, consider calling (216) 699-8145 today.
