Parents want to leave their children well provided for when they are gone. However, they no longer witness the most common disputes that can happen between siblings or between their children and the executor. There are many types of estate disputes that occur. This article will discuss some of them and what other parents can do while still around to prevent such conflicts.
What To Do If You Are Involved In An Estate Dispute
If you are involved in an estate dispute, the first thing you should do is seek legal advice. You will need to hire an estate dispute lawyer and not just any lawyer. This is because estate law is complex and nuanced. An estate lawyer who is experienced and has a thorough knowledge of all aspects of estate law will be able to advise you on your rights and options.
You should also be prepared for mediation or arbitration. This is a process whereby the parties involved in the dispute meet with a neutral third party to try to resolve the issue. If mediation or arbitration is not successful, the next step would be to go to probate court.
Estate disputes can be complex and emotionally charged. However, by seeking legal advice and being prepared for mediation or arbitration, you can increase your chances of resolving the issue without going to court.
Following are the most common estate disputes that occur.
Will Contests
The will is the most common legal document that is disputed. The main reason for this is that several people usually feel entitled to a share of the estate.
In some cases, the will may be invalidated due to errors in its drafting or execution. It is also possible for the will to be contested based on a lack of capacity or undue influence.
Parents can prevent this by ensuring that their will is watertight. They can do this by working with a lawyer specializing in estate planning. They should also keep in mind that even if they have a trust, this does not mean that their children will not fight over the estate.
Trustee Disputes
A trust is an arrangement whereby a person (the settlor) transfers property to another person (the trustee) to hold and manage for the benefit of a third party (the beneficiary). This means the principal (the parent) is assigning the trustee with administering the trust.
Trusts are often used to avoid probate or to minimize estate taxes. However, trusts can also be the source of disputes, particularly when the terms of the trust are unclear or when there is a question of whether the settlor had the capacity to create the trust in the first place. Disputes also arise when there are disagreements about how the trust should be managed or when beneficiaries believe that the trustee is not acting in their best interests.
Parents can prevent trust disputes by working with a lawyer to ensure that the terms of the trust are clear and unambiguous. They should also make sure that all relevant documents are properly executed and that the trustee understands their duties and responsibilities.
Inheritance Disputes
An inheritance dispute occurs when there is a disagreement over who is entitled to receive what from an estate. This can happen when there are multiple beneficiaries with conflicting interests. It can also happen when there is a dispute over how the estate should be divided up.
Parents can prevent inheritance disputes by including clear instructions in their will or trust about how they want their estate to be divided. They should also make sure that all of their beneficiaries are aware of their rights and responsibilities.
Estate Executor Disputes
An estate executor is a person who is responsible for carrying out the instructions in a will or trust. They have a lot of power and responsibility, which can sometimes lead to disputes.
Estate executor disputes usually arise when there are disagreements about how the estate should be managed or when beneficiaries believe that the executor is not acting in their best interests.
Parents can prevent executor disputes by appointing a trustworthy and competent executor. They should also make sure that all of their beneficiaries are aware of their rights and responsibilities.
Creditor Claims
Creditors are people or entities to whom the deceased owed money. These claims can arise from things like unpaid bills, credit card debt, or loans.
Creditors have a limited time in which to make a claim on an estate. However, if they do not file their claim within this time frame, they may still be able to collect the debt from the beneficiaries.
Parents can prevent creditors from making claims on their estate by paying off all debts before they die. They should also keep in mind that certain types of debts, such as student loans, may not be discharged upon death.
It is important for parents to be aware of the potential inheritance issues that their children may face. By taking some simple steps, they can prevent many of these disputes from occurring. Children must also be informed of their rights and responsibilities so that they can resolve any disputes that do arise.
