Family Feud: Avoiding Inheritance Conflicts

asset protection

asset protectionFights regarding inheritance usually occur among adult kids after the death of a loved one. This is maybe because one child got more, while other kids are left with less than what they think they deserve. Fights among siblings could get worse when the parent favors one over the other.

Another bad thing about inheritance feuds is that it can be expensive and time consuming. Experts say that fights over asset division can cause rifts in families that may be impossible to heal. To prevent this kind of conflict, it is important to have sophisticated legal arrangement or an estate plan that is designed to preserve family harmony.

What Fair Really Means

When it comes to dividing property and possessions, it is almost impossible to be equal. Deciding what fair really means can help you come up with a suitable arrangement that would benefit everyone. You could decide, for instance, to leave more money to a child with financial problems and give a smaller amount to a kid who is doing financially well. You can also give more funds to a disabled child for long-term care and leave the vacation home to the other sibling.

Communication Helps

It is beneficial to talk to your loved ones in a family meeting to discuss inheritance matters. If kids and relatives know what to expect and you tell them why you’re allocating assets that way, you can minimize conflicts. Asset protection attorneys suggest creating your estate plan accordingly in a meeting with everyone present, and explain your decisions.

Prepare the Necessary Documents

To promote family peace, have appropriate documents in place. These include a will, trust, advanced medical directives, and a living will. It is also a good idea to consult an adviser or an asset attorney who can prepare the documents you need. Make sure to update documents as life changes happen such as birth, death, or separation.  You can also appoint a third party to administer the estate and avoid conflicts of interest.

The right kind of planning can help minimize or prevent battles in the future. Make sure to discuss decisions with concerned family members and seek legal help to ease resentment during a difficult time.