A well-crafted estate plan should prevent any anticipated
conflicts between your beneficiaries, however, an unhappy beneficiary can always
challenge the trust after your death.
A common example occurs when family members do not agree on
the financial decisions being made by the trustee. When the family home, a major asset of the
estate, is appraised and sold at market value after the parent’s death, a
beneficiary may be unsatisfied with the proposed sale of the home (wanting it
to stay in the family), or even with the sale price itself. The unhappy beneficiary may challenge the
trust, which can cause a long and costly delay in the distribution of assets
and incur legal fees that reduce the size of the estate.
An ideal way to head off this conflict is to communicate
your wishes about the distribution of your assets with your children in advance. We understand that this is a difficult
subject to discuss, but the chances of a beneficiary challenging the trust
after the death of a loved one can be significantly reduced when all parties to
the trust are aware of the parent’s intentions.
To help ease the discomfort of discussing financial
arrangements, you should consider inviting your estate planning attorney to
meet with you and your heirs when you choose to have that discussion. Timothy Follett, Attorney at Law, is more than
happy to discuss your goals and concerns with your children.
We believe an open discussion allows everyone to voice their
thoughts, understand how the trust affects them as a beneficiary, and potential
disagreements can be tackled and resolved upfront. This is a difficult conversation to have, but
everyone benefits by avoiding conflicts, court challenges, and delays when the
trustee is administering and distributing the assets. More importantly, you may find that the
family comes together after they find out that you have thought of everything
and everyone!
Let us know how we can help you. Call our office to schedule
an appointment to talk to Timothy about how we may guide you in talking to your
heirs, or to schedule an appointment to bring everyone together.
(805) 669-7009 or tim@santabarbaraestateplanner.com
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