An estate plan provides peace of mind that your wishes direct your legacy, instead of the government’s wishes. But even estate plans that are otherwise solid can involve disagreements among Fiduciaries and Beneficiaries. Especially during a time of grief, conflict about an estate plan is the last thing that a family needs.
Though always possible, there are some ways to be proactive and get ahead of potential conflicts. We’ll recommend three specific practices to reduce the likelihood of conflict in your estate plan.
Be Transparent with Your Beneficiaries and Fiduciaries
An important way to prevent family conflict is through open communication. Discussing your estate planning decisions with your Fiduciaries (Agent, Executor, and/or Trustee) and Beneficiaries now reduces the risk of misunderstandings later.
This doesn’t necessarily mean that you disclose all details about your assets. This certainly would not be appropriate if your Beneficiaries are minors (through a trust, hopefully).
But especially with mature adult Beneficiaries and your Fiduciaries, they should understand what your wishes are, and even some of the rationale behind your decisions. Explaining your choices allows you to address concerns early and foster understanding before your plan is put into action.
If a Beneficiary finds out about your plan after you’re gone, he or she may take issue with any conditions attached to the legacy, or the timeframe for distributing it.
Discussing this early doesn’t guarantee conflict avoidance. But it affords the opportunity to hash things out now while you are here. As the saying goes, conflict delayed is conflict multiplied.
Have Clear Instructions to Prevent Conflict in Your Estate Plan
Vagueness in an estate plan can cause disputes. Make sure your estate plan provides specific, detailed instructions on asset management and distribution, as well as the roles that each person plays.
Avoid using broad or ambiguous terms. Clear language reduces the chances of misinterpretation and potential conflicts.
For example, a trust distribution provision that many of our clients choose is a “HEMS” standard—health, education, maintenance, and support. This distribution standard often lasts for a period of time, such as until age 25 or 30. Upon reaching that age, that’s when the Trustee would distribute the remaining balance in the trust.
Until that point, the Beneficiary knows what he or she is and is not eligible for. And if you’ve taken our first recommendation, he or she also knows the reasons why.
By contrast, it’s probably not a good idea to use a standard that looks like this:
Humor of this aside, while there is some direction on what constitutes a “Douchebag,” the Executor and Trustee have a lot of discretion on what this means.
If the Executor or Trustee simply has a personal problem with a Beneficiary, is that sufficient to make that Beneficiary a “Douchebag?”
Who knows.
It’s better to set up clearer language about what this standard means. And perhaps in a less pejorative way.
Remember, Wills are public documents. If you publish derogatory information about someone in a Will, your estate could be liable for defamation.
Bottom line: being clear is being kind. If you have conditions, set them out in manner that’s easy to understand.
Work with an Estate Planning Attorney
Even with transparency and clarity, an estate plan is a legal document that requires expert guidance. An estate planning attorney can help you prepare a plan that is legally sound and free from common mistakes that often lead to disputes.
An important aspect of putting estate planning documents together is the execution. The law often has execution formalities for these documents to be effective. The average person doesn’t always know this and may make critical mistakes that leave their documents invalid.
For example, a common belief is that a signature and notary acknowledgement is sufficient for a Last Will & Testament. But Tennessee law doesn’t actually require a notary acknowledgement.
A Will is valid only if the Testator (creator of the Will) signs it in the presence of two witnesses, and those witnesses sign it in the Testator’s presence and each other’s presence.
When you work with an estate planning attorney, conflict is less likely because this professional will guide you through the process in a comprehensive manner. Beneficiaries and Fiduciaries also have some reassurance that an attorney may catch problems like a lack of legal capacity or undue influence.
It’s more than just spitting out documents. This process is about creating something that clearly covers your wishes and avoids common pitfalls.
An attorney who regularly does estate plans can anticipate many issues and prepare your legal documents accordingly. Online document preparation software does not do this. User error can often lead to expensive disasters.
Final Thoughts on Avoiding Conflicts in Your Estate Plan
Reducing the risk of conflict in an estate plan involves careful planning and expert advice. There is no absolute way to prevent conflict. Someone may still want to stir up trouble no matter your efforts. But you can make wise decisions now that reduce the risk of things going wrong later on.
By communicating openly with Beneficiaries and Fiduciaries, being clear in your legal documents, and working with an attorney, you can protect your family from preventable disputes.
Connell Law, PLLC provides residents of Rutherford County, Tennessee and the surrounding area with estate planning. Reach out to us today to request a free consultation.
