One of the expressions from family after grief following the passing of a loved one is confusion. Not knowing the extent of the deceased’s assets, or who receives which items, can put family and friends in an uncomfortable situation. When not properly managed, this can result in conflicts that can sometimes go on for a long time.
“If you are particular about ensuring harmony among your family after your death, then you must know the right strategies for estate planning,” says the Attorney Cindy Nguyen of Amity Law Group, LLP. This article discusses some of the notable strategies for peaceful trust and estate settlements.
Start By Understanding the Probable Conflict Source
It is almost impossible to address any issue without first knowing what the root cause of that issue is, and this applies to estate settlements as well. Over time, some notable conflict sources include poorly drafted estate planning documents and unequal distribution among beneficiaries. Other reasons could be concerns arising from undue influence or issues around the validity of the testamentary document.
Although California offers a probate and trust system to address these issues, it is not always ideal to start with litigation. A more dialogue-driven approach can promote clarity and reduce the friction that litigation may cause
Having outlined some of the probable sources of inheritance conflicts, how then can you ensure peaceful trust and estate settlement?
Ensure Clarity Through Effective Communication
As easy as it may sound, clear and good communication is one of the most effective strategies for amicable estate settlement. As much as possible, beneficiaries should be updated about key estate assets and the distribution timeline. Silence on these issues can result in suspicion, lack of trust, and resentment.
Mediation Should Be Promoted Above Litigation
Often, cases of contested trust or estate matters come up before several courts in California. Understanding the sensitivities of these cases, courts often recommend mediation. With this, a neutral third party is involved to ensure that conversations from conflicting parties are heard, reviewed and the right course of action is agreed upon. The most important consideration is the willingness of conflicting parties to listen to the other party and reach a compromise that works for everyone.
Mediation is not only private, faster, and cheaper than litigation, but it can also help resolve many issues. Conflict around property appraisals, sentimental assets, or issues around fraud are key issues that mediation can be considered.
Consider a Family Settlement Agreement.
There are times when the formal mediation approach may not be successful or may be dragging on for too long. An alternative to this is to consider inserting a family settlement agreement into the estate planning document. With this, heirs and beneficiaries can modify certain terms of a trust or will, and with the agreement of all parties, it becomes legally binding.
A family settlement agreement can be a great consideration when there are minors involved or where there is the feeling of impracticality with asset distribution. It can also help to avoid property tax issues, provided the agreement is reached in good faith.
Plan with the Future In Perspective
A great approach to estate planning is to ensure that you plan while creating a system for constant review. If you are drafting a will or creating a trust, ensure the language and wording are unambiguous. When choosing a trustee, capacity, honesty, transparency, and accountability are key considerations you should make.
Following careful consultation with your attorney, you can consider including a no-contest clause in the estate planning document to discourage unnecessary litigation. If the goal is harmony, then the approach should be transparency and attention to estate planning details.
Conclusion
Conflicts occur in many families, and when it comes to inheritance, they do not have to tear the family apart. A good way to ensure this does not happen is to take the right steps to ensure proper estate planning that outlives you. A great place to start is to speak with an estate planning attorney in California today to avoid any possible inheritance conflict.
