Family disputes over inheritances are not uncommon, even if very few of them result in formally challenging a will in probate court.
A lack of understanding about trusts and wills is part of the problem of family disputes. Not knowing the plans for dividing property – or the rationale behind the plan – can add fuel to the fire. A qualified attorney who specializes in trusts and wills can help you navigate the process and establish an ironclad plan as well as suggest ways to communicate with family members.
Creating a Dispute-Proof Estate Plan in Illinois
A revocable trust, combined with a pour-over will that moves remaining items into the trust, secures your assets for the future. These are tools that deliver your accounts, investments, and properties to your family members upon your death, avoiding the time and expense of probate court.
Revocable trusts allow you to control and use income from these accounts through your lifetime but when properly structured, they become a vessel to convey your assets to your descendants when you die.
Yet creating a revocable trust isn’t enough to avoid family squabbles. The right estate attorney can help create a package of information and legal documents that will diffuse disputes. This process should involve:
- A complete set of legal documents that demonstrate your unwavering and competent decision making. Combined with a letter of intent that spells out your decision-making process to explain the rationale for your actions.
- Setting up trusts allows you to tailor distributions to family members, such as a “spendthrift provision” that doles out annual disbursements to those with money issues.
- If the trustees of your trust and executor of your will are distrusted by family, consider hiring professional fiduciaries instead of using friends or family members in the role.
- Reduce opportunities for disputes among family members by hosting individual discussions with family members. Consider adding a “no contest” clause to the documents to reduce the possibility of a probate court challenge.
- Address any financial gifts in writing. Acknowledge the recipient, amount, and date provided as well as any repayment stipulations. Specify if this gift will reduce the recipient’s total inheritance.
- Keep your plan and documents updated with significant family changes like births, deaths, and marriages.
How an Estate Attorney Can Alleviate Family Disputes
The best way to handle family disputes over inheritances is to be proactive, heading off issues before they fester and become intractable.
If family members understand your plans and intentions, there is less fuel for discontent. An estate attorney can explain trusts and wills to your family members, describing the need for each and how the tools work together. The benefit of skipping probate and saving related fees could convince some skeptics.
Power of attorney is one of the most contested aspects of this phase of life as they may make binding financial and healthcare decisions. While the POA holder is perceived as a person with access to all assets and the ability to manipulate accounts, the role can be strictly limited to reduce conflict. Educating family members about rules surrounding trusts will also relieve concerns about access to assets.
Along with avoiding probate by establishing a trust, your attorney can create a trust vehicle that limits payouts to the current descendants, instead spreading the total amount across generations. Illinois is one of few states that allows generation-skipping trusts, providing asset distribution to grandchildren and great-grandchildren – but these are governed by federal law and are subject to taxes.
Finding the Right Estate Attorney in Illinois
Estate attorneys are knowledgeable about tax implications and trust law, yet not all can communicate the stability they provide to family members. Ensure your wishes are clearly documented by scheduling a consultation with Legacy & Life Law Firm. Our experienced estate attorney can answer your questions about setting up a revocable trust. When done right it will bring peace of mind to you and your family.