Whether you are creating an estate plan for the first time or making
changes to one, be aware that how you plan to leave your assets may create
tension in your family. Although the potential for conflicts can develop
without a Will, different treatment of children or other beneficiaries as part
of a well thought out and drafted estate plan can cause animosity among family
members.
Family
conflicts may develop for many reasons, such as when a loved one chooses to
unequally divide their estate, leaves money in trust instead of a lump sum, or
disinherits a family member.
North
Carolina Estate Planning Conflict Resolution
How
can one manage family conflicts in estate planning?
1. Bring family together. Hold a family meeting that discusses the assets
left to each child and family member. This will allow an opportunity for
explaining important asset protection decisions and other considerations. These
meetings also help to reduce tensions that could build later on should
resentment develop between siblings. This is also an ideal time to bring up any
existing health issues for which your family may need to plan.
2. Choose and talk with your executor and agents. Many conflicts can be
prevented if your executor and agents have a clear understanding of your
wishes. You may have updated your beneficiaries and neglected to inform them or
your executor of the changes, which can cause confusion later on. When it comes
to decisions for your medical care, who have you granted power of attorney and are they aware
of their responsibility?
3. Use succession tools with an attorney. The types of trusts and business
entities you choose to establish will offer different degrees of protection and
benefits. For those who own family businesses, the interests of business
partners and family heirs may conflict. Structure a business succession plan by
working with a North Carolina estate planning attorney.
Succession plans help preserve a company’s value for the business owners’
heirs. There are other planning techniques a lawyer
can review with you that will greatly reduce the potential for family conflicts
so that your assets are available for the family members you designate when
they need them.
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