Category Archives: Blog Series

Four Things that Cause Sibling Feuds Regarding Estate Planning

 

Caring for an ill parent or settling their estate once they have passed is an emotional time in a family and can start a feud or add to an already existing one if specific preventative measures are not taken. When parents divide their assets to their children, they don’t expect such fights to occur, but they do. Not all disagreements can be prevented, but with careful planning, following the advice of an Estate Planning Attorney, parents can try to avoid these issues.

Here are four things that commonly cause fights and advice on how to prevent them from happening.

  1. No Healthcare Directive and Power of Attorney

When a parent gets sick, it can be stressful, especially if they need to be hospitalized for an extended period. This can become more challenging if their situation becomes critical and they are unable to voice their healthcare or financial wishes. If a parent does not have a Healthcare Directive or Power of Attorney, their loved ones are forced to make the decisions for themselves. This can cause conflict between siblings if they are unable to agree on a resolution. In some circumstances, siblings have taken each other to court to fight for ‘their side’. This can cause a rift in their relationship, costly court fees, and lost time that instead should be spent by their parent’s side.

To avoid this conflict, parents should have their Healthcare Directive and Power of Attorney prepared:

  • A Healthcare Directive specifies your wishes for medical treatments and allows you to appoint someone to carry out your wishes if there is ever a time when you are no longer able to communicate or provide consent
  • A Power of Attorney allows you to appoint someone to look after your financial affairs, such as your property, while you are incapacitated
  1. No Will

If both parents pass away without a Will, a family can be thrown into chaos. This can cause fights between siblings if they want the same thing or can’t agree on how to equally divide the items.

Parents should create a Will and specify who gets what. They can identify items and give them as gifts to their children. Creating a Will not only ensures your loved ones are looked after, but it decreases the chance of siblings fighting over material possessions.

  1. Lack of Communication

In some cases, having a Will is not enough to stop feuds from occurring. A lot of times, parents don’t discuss their Will with their children (as it can be uncomfortable talking about money or their mortality). However, this lack of communication can cause more problems between siblings because it is too late to hear their parents’ reasoning.

Parents should communicate with their children about their Will so they are aware of the contents and can have an open discussion.

  1. Wrong Personal Representative/Executor

A Personal Representative/Executor will distribute the assets Personal Representative/Executor. Since the Personal Representative/Executor has the power to make decisions, it can create some tension between siblings. Arguments can arise because they may feel jealous that their sibling is the Personal Representative/Executor or that their sibling is abusing their power and not carrying out their responsibilities.

Often parents can select a third party as their Personal Representative/Executor. This can help alleviate tension between siblings as the Personal Representative/Executor is impartial and has no personal interest in the estate.

Every situation is different and sometimes feuds and disagreement cannot be avoided even with careful planning and the best intentions. As always, I recommend a lawyer in the state in which you reside prepare these papers, so there are no legal issues when the time comes for them to be implemented. If you live in the Daytona Beach, Florida area, call my office for a free consultation.

 

Estate Planning Pitfalls

Estate Planning Pitfalls Part 2

 

Last month I started what I consider one of my most important posts –a series regarding the

Estate Planning Pitfalls

There are numerous pitfalls of which you need to be aware regarding your Estate Plan.

most common pitfalls I see in Estate Planning.

Part two of my multi-part blog series discusses the pitfall of failing to keep a current/updated Will. This is probably one of the easiest pitfalls to avoid and the most common blunder I see by other people’s clients.  I tell my clients to come see me to review everything EVERY three years whether they think they need it or not —to encourage this practice I personally do not charge for these “check-ins” but even if your attorney charges you, go –it’s money well spent.   

Case Study:  Estate Planning Pitfall #2– Failing to Maintain an Updated Will

I was hired by a young man whose father had recently passed after a lengthy battle with illness, he had two half-siblings

There are numerous pitfalls of which you need to be aware regarding your Estate Plan.

out of state, the decedent had some property here, some property out of state, an ex-girlfriend living in his home.  All a recipe for a convoluted case at best case.  This will be compounded because although Father had resided in Florida for quite some time his antiquated Will was drafted in another state nearly a decade before his death.

To add insult to injury, because the Will was self-prepared on a form purchased at an office supply store it provided for very specific bequests to each of his 3 children and a close friend.  It did not provide for his residuary Estate —what could be called the “everything else” clause.  And a decade later all but one of the properties left to his beneficiaries was long gone and his “everything else” is everything and now left to chance.  The Will also provided for a Personal Representative who lived 2000 miles away and who likely will not want to be in charge of the circus that is about to commence with a bunch of heirs who don’t have a relationship and no clear instructions.

This case hasn’t ended yet but it’s going to be a long haul and could have been very easily avoided if he had just updated his Will prior to passing.

And so, even with a seemingly simple estate—say, you “just” own a bank account and a house—it’s crucial to keep an updated will or a living trust or otherwise Probate Proof yourself.   These scenarios can be avoided with the advice of an Estate Planning Attorney –so have your Estate Planning reviewed every three years or when life changes happen [beneficiaries pass away, children are born, divorce occurs, assets are sold, to name a few] and failing to do so can have unintended consequences.

Estate Planning Pitfalls

There are numerous pitfalls of which you need to be aware regarding your Estate Plan.

You’ve worked way too hard to leave your estate plan to chance. Stop procrastinating and protect your family and loved ones and your hard-earned legacy today. However, when doing so, there are numerous pitfalls of which you should be aware.

A simple Google search can reveal some harrowing examples of those pitfalls. This is part one of a multi-part series of what can happen when Estate Planning goes wrong:

Pitfall Possibility #1: Picking An Inappropriate Personal Representative

Are there any long-standing feuds in your family? Does your anticipated Personal Representative live near you? Who will handle your final affairs in an appropriate and fair manner?

These are all questions to spend some time thinking about when determining the best person or persons to act on your behalf after your death. Read on to review an example of what can happen if these things aren’t considered properly:

“When you’re dealing with families, things can get complicated—quick. We see so many cases come through with unresolved feuds between siblings. It’s one of the most common causes of litigation over an estate.

I handled one case where a client’s sister had been named the executor of their father’s estate, despite the fact that she lived in a different state than both her father and brother, whom she’d been fighting with for years.

Ideally, in a case like that, the parents would have named an objective, independent personal representative—like another family member or a trusted friend—as their estate’s executor, instead of one of the kids.

But that didn’t happen here.

After the father passed away, our client started to take care of a few things around the house, not realizing he didn’t have the legal right to do so. Once his sister arrived, there were accusations about items being removed—and a long legal battle ensued.

Ultimately, even though the estate was to be divided evenly, our client’s sister had all of the decision-making power to decide how that happened, so long as the monetary value was equal. There is no way to challenge her decisions in court, and we’re still waiting to see whether or not the siblings can put their feelings aside and divide the estate fairly.

To avoid contentious situations like this, we counsel clients to consider the complicated dynamics between the family members named in a will. If there’s even a possibility of an estate causing fights or damaging relationships, we encourage them to look for an independent personal representative who can settle things fairly.”

                                                    —Tom Gisriel, attorney at Pessin Katz Law, Baltimore, Md.

Mr. Gisriel finishes his story with some valuable advice: Consider complicated dynamics between family members and think about an independent Personal Representative if those dynamics will damage relationships –a neutral family friend? Your Attorney?

Follow the blog, so you do not miss the next chapters of Estate Planning Pitfalls.

Avoid these headaches by putting your Estate Plan in motion today by meeting with an Estate Planning Attorney where you reside.

Heidi S. Webb provides competent, experienced and trusted Estate Planning and Probate Estate Administration services to clients in the Daytona Beach, Florida area. Call today to schedule your free legal consultation.

Original Article with “case studies” located at https://www.learnvest.com/knowledge-center/estate-planning-mistakes