While engaging in the estate planning process, you’re probably focused on what you can do to position your loved ones for success. That’s a good thing, as it constitutes a major part of your estate plan. But as you create your estate planning strategy you can’t overlook the possibility that someone, perhaps a disgruntled relative who feels like they should’ve inherited more, may try to challenge the legal validity of your estate planning documents. If you’re not careful in how you develop your estate plan, then this challenge could be successful, completely upending everything you’ve done to bring your vision of the future into reality.
That can be stressful to think about, but there are steps that you can take to minimize or even completely eliminate the risk of an estate challenge. So, if you anticipate that someone isn’t going to be unhappy with how you distribute your estate, then we encourage you to keep reading.
A lot of people don’t think about the possibility of an estate challenge. Don’t let that happen to you. Instead, be prepared to address these potential situations as you create your estate plan so that you can head-off any challenges before they arise. Here are a few strategies that may help you do that:
- Visit your doctor: Many estate challenges are based on mental capacity. If you lack the requisite mental capacity to know the nature and extent of your assets, as well as how your estate plan disposes of them, then a challenger may be successful in rendering your estate plan invalid. By visiting your doctor close in time to when you create your estate plan, you can obtain a medical opinion as to your mental competency heading into the signing of your estate plan documentation.
- Have witnesses: The signing of your estate plan should be witnessed. The more people you have around you who can testify to your mental clarity at the time of document execution the better.
- Give gifts to those who may challenge your estate plan: Giving gifts to those who you expect to attack the validity of your estate plan can be a strong strategy. This is because if the individual in question accepts the gift, then they’ve acknowledged that you have the capacity to dispose of your assets as you see fit. This can give you estate strong legal arguments in the event of a challenge.
- Use a no-contest clause: This type of clause indicates that anyone who unsuccessfully challenges the estate plan will be cut out of the inheritance scheme. This may be enough to dissuade a disgruntled beneficiary from taking legal action for fear of losing out on what you’ve actually left them through the estate plan.
- Use a letter of instruction: This document, while not legally binding, can specify how you want your final arrangements to play out, but it can also lay out the justifications for your asset distribution scheme. This, in turn, provides clarity and demonstrates the logic behind your decisions.
An attack on your estate plan can disrupt what you envision, perhaps even leaving those you care about most in a difficult financial position. That’s why now is the time to start thinking about how you can create an effective estate plan that protects the viability of your asset distribution scheme.