Have you looked at your will recently? Do you have a will in place, or is this one of those future “to do” tasks?
There is an insightful article in the June 20th edition of The New York Times titled “When a Will Divides an Estate, and Also Divides a Family”. Paul Sullivan, the writer, goes on to describe a family in which a mother, who was predeceased by one of her adult children, passed away leaving nothing to her previously deceased son’s children.
This was a complicated case including an Alzheimer’s diagnosis, a deathbed change of mind and possibly a misunderstanding of “per stirpes” designation. The result was a family divided and an ensuing legal challenge contesting the will. As John O. McManus, an attorney in New York, describes, “judges work very hard to protect individual rights to dispose of their property as they wish.” Likewise, Adam von Poblitz, head of estate planning for Citi Private Bank, states, “the bar to overturn a will is high. The capacity needed to make a will is very low.”
Disinheriting family members is an extreme step and one that is not even allowed in some countries outside the US. Although rare here, unequal inheritance is used and can be justified. ‘Fair’ is not always an equal distribution. Of course there are families with special needs or disabled members. A family business adds complexity as does a blended family. Children with addictions cause great anguish for families who want to help and dilemmas regarding how to best to do so.
The important message of this complicated and painful family story is communication. Whatever someone’s reason for distributing an estate unequally, it is best to tell heirs what to expect. If it is too difficult to do in person, write a letter explaining what and why.
Here is where a team of legal and financial professionals are valuable. Your team will listen to your goals and build a plan that follows your wishes and provides the best for you and your heirs. We at Summit Financial Advisors have had the privilege of serving many clients in planning and executing this all important part of their legacy. We would be happy and honored to discuss your plan confidentially with you.
Establishing a will is easy to put off, but as a very wise pastor once told me, “Everyone leaves a legacy, and either you will control it by your decisions and actions now or someone else will after you are gone.”