How To Safeguard Your Estate Plan From Family Disputes In Minnesota

In this article, you will discover:

• The role of no-contest clauses in preventing family disputes over estate plans.
• Whether establishing a trust can reduce family disputes over inheritance.
• Whether letters of intent are beneficial to estate plans.

What Role Does A No-Contest Clause Play In Preventing Disputes?

A no-contest clause is a stipulation within the estate planning documents that states if somebody contests this will, they get nothing. Its purpose is to prevent somebody from contesting the document. It’s not necessarily enforceable, but it can serve as a warning.

Can A Trust Help Reduce Family Conflicts Over Inheritance?

A trust can reduce conflict once you execute it. When you draft a trust estate plan and sign it at the execution meeting, you walk out the door with it. From that day forward, that trust takes effect within your life and with respect to your property.

You can put any of the property you own into the trust. You can also precisely dictate what you want to happen with that property throughout your lifetime.

You can have all kinds of plans – initial plans, primary plans and backup plans. A trust is a more robust plan than a basic will. A will is good, but a trust is the platinum plan. If family conflict is expected, creating a trust is the way to go to mitigate some of that conflict.

Can Naming A Third-Party/Personal Representative Reduce Family Conflicts?

For many families, relationships can be contentious due to longstanding grievances or resentments. Family dynamics are often difficult to navigate, whether you’re the professional executor, the personal representative or the beneficiary.

Heightened emotions between family members linger for whatever reason. Having somebody neutral administrate the estate, to whom you’re not emotionally tied, can be helpful and diffuse conflict.

Attorney Kathleen Gomez is a seasoned lawyer based in Otsego, MN, who has helped countless clients like you navigate the intricacies of estate planning law. Having guided many clients with their estate planning needs, she is prepared to assist you in creating an estate plan that will safeguard you from family disputes.

Still have questions? Ready to get started? Contact Gomez Law PLLC today to schedule an initial consultation.

What Is The Benefit Of Including A Letter Of Intent To Explain My Decisions?

Often, someone who’s writing a will (known as the “testator”) will omit a person from their estate plan that you would expect them to include. Having a letter of intent explaining why that person was excluded is helpful. Not having that explanation begs a lot of questions. Is this person excluded because they did not get along with the testator? Are they excluded because they don’t need the money as much as someone else?

Many different factors can lead the testator, who is making the estate plan, to exclude someone. As an outsider lacking context, it can be difficult to determine if the reasons for excluding someone are legitimate.

If there is a letter of intent, it explains to both the excluded person and others looking from the outside the testator’s mindset regarding why that person was omitted. For instance, maybe they’re receiving government benefits, and a distribution from the estate would disturb those benefits. 

Can I Add A Mediation or Arbitration Clause To My Estate Plan To Help Resolve Family Disputes?

There are good reasons to add a mediation or arbitration clause to your estate plan. While the courts are the primary venue for dispute resolution, mediation and arbitration are alternative forms of dispute resolution that have proven to be constructive and effective in resolving family conflicts. 

How Can I Balance Transparency With Privacy In Estate Planning To Minimize Misunderstandings?

A trust balances transparency with privacy. A trust is private. If it’s done correctly, you can keep the estate out of the courts. However, it’s not a guarantee that if somebody acts inappropriately, you won’t wind up in front of a judge. Still, generally speaking, the trust keeps everything private so that you don’t have to go before the courts.

You can put anything you want in your trust or use it for any purpose except an illegal one. You can have that transparency in a trust to explain, for example, your intentions regarding why someone would or would not inherit. That kind of transparency can minimize misunderstanding and help you stay out of court.

If your family is a blended one or if family members don’t get along, a well-crafted trust plan can minimize disputes. You also can use a trust to stay out of the courts if there’s real estate in the trust or assets over $75,000.

Still Have Questions? Ready To Get Started?

For more information on protecting estate plans from disputes in Minnesota, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (763) 284-5552 today.