In many families, everyone gets along, happily gathering for the holidays, sharing laughs, telling stories, and enjoying each other’s company. Then the matriarch or patriarch becomes incapacitated. Suddenly everyone wants to step forward to be the loving, responsible relative. Questions of who will be the primary decision-maker for grandma or grandpa can lead to tension. If the incapacitated loved one lingers long enough, years or pent-up resentment and hurt feelings can bubble up when they finally do pass away, and the once-happy family can become embroiled in litigation. While this example is not the fate of every harmonious family, it does happen.
Having an Estate Plan Is Crucial to Your Family’s Success
When everyone is alive and happy, it is easy to think that nothing will break a family apart. Many people think that since everyone gets along, estate planning is unnecessary because everyone will look out for one another and do only what is fair. However, having a properly prepared estate plan is crucial. Failing to plan not only takes all the control out of your hands but can also leave hurt feelings and possible confusion over your true wishes. This confusion may force family members to pursue the only source available to resolve the misunderstanding: probate court.
Not Just Any Estate Plan Will Do For Your Family
While a lack of planning can lead to disastrous consequences, poor or incomplete planning can be just as harmful. When a plan is outdated, vague, improperly prepared, it can leave the door open for differing opinions among family members. These differing opinions and interpretations sometimes result in family members challenging the documents in court. This is especially unfortunate if you have a trust, as one of the primary reasons to prepare a trust is to avoid court involvement. A trust contest, however, places your loved ones and the provisions in your trust under court scrutiny.
You May Be Able to Use a No-Contest Clause
If your documents are up-to-date and clearly state your intentions, but you worry that your decisions may displease your family, Texas is one of the number of states where you can include a no-contest clause that could help prevent or limit challenges to your will or trust. A no-contest clause is a provision that states that if a beneficiary contests your will or trust (whichever document contains the clause) and is unsuccessful, they will receive nothing. However, while Texas recognizes no-contest clauses, they aren’t valid everywhere, and litigation on these clauses can be difficult. This is why it is always best to discuss this option with an experienced estate planning attorney.
You Can Protect an Inheritance with Proper Planning
Alternatively, if you are concerned about a beneficiary receiving money outright because of creditor issues, spending habits, etc., you need not disinherit or leave them out of your estate plan. Leaving money to a family member does not have to be an all-or-nothing decision. By utilizing a discretionary trust, you can set aside money for the individual to be distributed by a trustee when and how the trustee deems appropriate. You do not have to leave your loved one an inheritance outright without any requirements or stipulations.
A Proper Estate Plan Can Help Avoid Contests For Your Family
Having a well-drafted, up-to-date estate plan is crucial regardless of your family situation. Will or trust contests can be costly and quickly drain what you want to leave behind for your loved ones. We can assist you in creating an estate plan that will ensure that your wishes are carried out and that harmony can be maintained within your family after you are gone. Call us today to schedule an appointment. Nielsen Law PLLC provides family-focused estate and business planning to individuals and families in Austin, Round Rock, Cedar Park, and the Central Texas area. For more information, and to learn about our firm, please contact us. We look forward to working with you.
