News & Resources: Blog

Ensure Your Estate Plan is Structured to Minimize Conflict

Published: April 27, 2023

It is quite possible that your heirs, including minor and adult children, do not agree regarding family circumstances, particularly when it comes to inheriting your estate. Relationships can change and intensify when you die, with underlying issues that bubble to the surface, creating tensions over your estate and possibly tearing your family apart. Even if your children get along well, distribution of your assets can require conflict resolution skills. Without previously experiencing any significant conflicts, even close siblings can struggle to maintain happy family relationships when settling your estate.

While you are younger and mentally fit, proactive planning can drastically reduce family conflict and infighting among your heirs. During these next two decades, vast sums of inheritable assets in the US will transfer from the Silent Generation and Baby Boomers in the realm of 30 to 68 trillion dollars to their adult children. Wealth management groups estimate that roughly 70 percent of these families will lose a sizeable chunk of their inheritance due to estate battles.

Yet sibling conflicts are not limited to money. There are always stories of heirs fighting over a piano, valuable artwork and jewelry, sentimental items, and even baseball card collections as they vie for a perceived edge of inheritance. Situations may occur where fighting families spend more on legal fees in court litigation than the actual worth of what the other heirs stand to inherit.

The easiest way to avoid infighting is to speak to your children directly to manage their expectations about your estate plan and receive their input. You can’t honestly know what your heirs prefer to hold on to once you are gone unless you ask. These family discussions need to include all heirs equally because if one heir gets a say about what they inherit, so should all. 

At the same time, these conversations can be difficult because an equal division is not always possible depending on the asset. Additionally, some well-off heirs may want more sentimental items or family collections rather than cash as it might change their tax bracket. In contrast, the less well-off heirs can genuinely benefit from additional monies.

If your plan is for unequal distributions of your estate and you opt not to discuss it with your heirs while you are living, include explanatory language in your estate plan as to how you came to your decisions to help your heirs understand your goals and minimize conflict. Your estate planning attorney can also communicate to your family why being fair is not always the same as being equal.

To reduce the potential for conflict in your estate plan, do not name joint personal representatives (executors) or joint trustees. Administering probate, trusts, and your estate with just one person accountable for the final decisions in each legal entity will simplify your heirs’ interactions. Simply because an heir is the oldest or of a certain gender does not qualify them to administer your estate. In fact, all of your heirs may not be suitable to serve in these roles, in which case a neutral third party needs to be appointed. 

A neutral third-party entity can be a trust company or bank that can execute your wishes without family participation in decision making. For those who worry an heir may squander generational wealth, a discretionary trust administered by a neutral third party enables you to provide for your beneficiary without worrying about the money going to waste. 

Finally, keeping your estate plan updated with your estate planning attorney reduces the likelihood that an heir will contest your will or trust. Major life events like death, divorce, or remarriage require an immediate re-evaluation of your estate plans. Even if your family is not prone to conflict, managing heirs’ expectations and a sound, routinely reviewed estate plan can prevent a bitter legal battle that can tear your family apart. If you have questions or would like to discuss your legal matters, please do not hesitate to contact our office at 215-364-1111 to schedule a consultation.

CLIENT Testimonial

Scott Bloom Law Estate Planning Diagram

Sometimes after a loved one passes away, the family learns of things they were unaware of while the loved one was living. This was the case for one of our clients, Sam, after his father Tom Jr. passed away. Sam was always under the impression that the home he had grown up in, and that his father had lived in until his death, was owned by Tom Jr. To say it came as a surprise that it was indeed Sam’s grandfather, Tom Sr., who was the actual owner of the home, is an understatement. 

Apparently, when Tom Sr. had passed away nearly 40 years ago, there was no proper estate plan established. Now, Sam would need to open his grandfather’s estate, resolve tax issues that were never addressed, and then go through the legal process to make the home a part of his father’s estate. At first, Sam believed that the entire process would be easy enough for him to handle on his own. However, after digging a little deeper, he quickly realized he would need the help of a knowledgeable and experienced attorney.

Sam reached out to Scott Bloom Law and we developed a game plan for moving forward. We began by probating Tom Jr.’s will and, after some time, we were able to settle the estates of both Tom Sr. and Tom Jr. While it was no fault of Sam, this is a great example of the importance of having an Estate Plan in place. No one wants to leave their families in precarious situations after they pass. The long-term purpose of setting up an Estate Plan today is to preserve as much of your wealth as possible for the intended beneficiaries and retaining a capable attorney can help ensure all of your wishes are met.

At Scott Bloom Law, we are a team of advocates who care, always fighting for what’s best for our clients and their families. With knowledge, experience, and compassion, we strive to find solutions that make the aging process as emotionally and financially easy as possible. Visit us at scottbloomlaw.com or call 215-364-1111, to talk to find out more.

- Case Study: Estate Administration

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CLIENT Testimonial

Dear Scott - Thank you for a job well done. I've settled the estate with my siblings. I also remitted my executor's fee to the children of my deceased sister. Thanks again for all you do!
- Estate of Fay B., Cranbury, New Jersey

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