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Trust Contest

4 Tips For Avoiding a Will or Trust Contest

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A will or trust contest can derail your final wishes, rapidly deplete your estate, and tear your loved ones apart. But with proper planning, you can help your family avoid a potentially disastrous will or trust contest. 

If you are concerned about challenges to your estate plan, consider the following:

Trusts and Will Contest
  1. Do not attempt “do it yourself” solutions. If you are concerned about an heir contesting your estate plan, the last thing you want to do is attempt to write or update your will or trust on your own. Only an experienced estate planning attorney can help you put together and maintain an estate plan that will discourage lawsuits and ensure all legal formalities are followed.
  1. Let family members know about your estate plan. When it comes to estate planning, secrecy breeds contempt. While it is not necessary to let your family members know all of the intimate details of your estate plan, you should let them know that you have taken the time to create a plan that spells out your final wishes and who they should contact if you become incapacitated or die.
  1. Use discretionary trusts for problematic beneficiaries. You may feel that you have to completely disinherit a beneficiary because of concerns that he or she will squander their inheritance or use it in a manner that is against your beliefs or harmful to them. However, there is an alternative to disinheriting someone. For example, you can require that the problematic beneficiary’s share be held in a lifetime discretionary trust and name a neutral, third party, such as a bank or trust company, as trustee. This will ensure that the beneficiary will receive his or her inheritance according to the terms and conditions you have dictated, while keeping the money out of the hands of unintended parties, such as creditors or an ex-spouse. You will also be able to control who will inherit the balance of the trust if the beneficiary dies before the funds are completely distributed.
  1. Keep your estate plan up to date. Estate planning is not a one-time transaction – it is an ongoing process. Therefore, as your circumstances change, you should update your estate plan. An up-to-date estate plan shows that you have taken the time to review and revise your plan as your family and financial situations change. This, in turn, will discourage challenges since your plan will encompass your current estate planning goals.

By following these four tips, your heirs will be less likely to challenge your estate planning decisions and will be more inclined to fulfill your final wishes. If you are concerned about heirs contesting your will or trust, please contact us as soon as possible.

The Harmonious Family that Won’t Fight? The Outcome May Surprise You

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Most families are happy families.  They get together for the holidays, share laughs, and tell stories.  Everyone gets along and enjoys each other’s company.  Then, the matriarch or patriarch dies.  Suddenly, years of pent-up resentment and hurt feelings bubble to the surface, and the once-happy family is now embroiled in litigation over the decedent’s estate.

When everyone is alive and happy, it is easy to think that nothing will break a family apart.  Many people think that since everyone is getting along, estate planning is not needed because everyone will look out for one another and do what is fair.  However, it is crucial that you have a properly prepared estate plan.  Failing to plan not only takes all of the control out of your hands, it can also leave hurt feelings and possible confusion over what your true wishes were.  This confusion will force family members to the only source able to remedy the misunderstanding: the probate court.

While a lack of planning can lead to disastrous consequences, poor planning can be just as harmful.  Documents that are not up to date, vague, or improperly prepared can lead family members to challenge them.  If the documents are not clear, family members may have differing opinions as to the true intention of the decedent.  This is especially unfortunate for those with a trust: One of the primary reasons to have a trust prepared is to avoid court involvement.

If your documents are up to date and clearly state your intentions, but you worry that your decisions may displease your family, you do have the ability to include a no-contest clause that may prevent or limit challenges to your will or trust.  A no-contest clause is a provision that states that if a person contests your will or trust — whichever document contains the clause — and is unsuccessful, they will receive nothing.  However, their effectiveness can vary from state to state, so if you think your family might contest your wishes, it is incredibly important to seek the help of an experienced estate planning attorney.

One common situation where contests can arise is when someone is left out of the will or trust.  If you want to intentionally disinherit a family member, consider leaving them a nominal amount at your death and using a no-contest clause.  By doing this, if the contest is unsuccessful, the family member has something to lose.  This may discourage them from contesting your wishes in the first place.  However, as previously mentioned, you need to work with an experienced estate planning attorney to make sure that this strategy is the best one for you based on your state’s law and your family situation.

As an alternative, if you are concerned about a beneficiary receiving a sum of money outright because of creditor issues, spending habits, etc., you do not need to disinherit them.  By utilizing a discretionary trust, you can set aside money for the individual that is distributed to them when and how you determine.  Leaving money to a family member does not have to be an all-or-nothing decision.

Regardless of your family situation, it is incredibly important that you have a well-drafted, up-to-date estate plan in place.  Will or trust contests can be very costly and can quickly drain the estate or trust, which means your loved ones will end up with less than you intended.  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.  Contact us or give us a call today to schedule an appointment.

James Brown’s “Vague” Estate Plan Forced Family into Years of Litigation

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James Brown, the legendary singer, songwriter, record producer, dancer, and bandleader was known to many as the “Godfather of Soul.” Although he intended his estimated $100 million estate to provide for all of his children and grandchildren, his intentions were somewhat vague.  This forced his family into years of litigation which ended up in the South Carolina Supreme Court.

Everything Seemed In Order…

Brown signed his last will and testament in front of Strom Thurmond, Jr. in 2000. Along with the will that bequeathed personal assets such as clothing, cars, and jewelry, Brown created a separate, irrevocable trust which bequeathed music rights, business assets, and his South Carolina home. 

At first glance, it seems as though everything in Brown’s estate plan was in order. In fact, he was very specific about most of his intentions, including:

  • Donating the majority of his music empire to an educational charity
  • Providing for each of his six adult living children (Terry Brown, Larry Brown, Daryl Brown, Yamma Brown Lumar, Deanna Brown Thomas and Venisha Brown)
  • Creating a family education fund for his grandchildren

However, only days after his death in 2006 from congestive heart failure, chaos erupted. 

Heirs Not Happy With Charitable Donation

Apparently, Brown’s substantial charitable donations didn’t sit well with his heirs. Both his children and wife contested the estate.

  • His children filed a lawsuit against the personal representatives of Brown’s estate alleging impropriety and alleged mismanagement of Brown’s assets. (This was likely a protest of the charitable donation.)
  • Brown’s wife at the time, Tomi Rae Hynie, and the son they had together, received nothing as Brown never updated his will to reflect the marriage or birth. In her lawsuit, Hynie asked the court to recognize her as Brown’s widow and their son as an heir.

In the end, the South Carolina Supreme Court upheld Brown’s plans to benefit charities and recognized Hynie and their son as an heir. 

Should You Anticipate Litigation?

Brown’s estate was substantial and somewhat controversial – and he failed to update or communicate his intentions to his family.  His heirs were taken by surprise.  And experienced attorney could have avoided much of the family upset.  Contact our office today to protect your goals or schedule your personal Estate Planning consultation NOW. We’ll help you decide whether it makes sense to avoid probate in your particular case and, if so, the best way to do so.