All too often, surviving heirs find themselves dealing with the consequences of someone’s inadequate or non-existent estate planning. You may not recognize the potential impact that this lack of action could have on your loved ones, but it can manifest in three distinct problems related to the administration of your estate.
The first problem is associated with lack of communication. If the intentions and specific details of your estate plan are not appropriately communicated, this sets the stage for potential disputes and confusion. A beneficiary who is not clear about your intended goals may develop their own misconceptions, which could even turn into estate litigation. Communication issues can also be related to unclear language in any of your estate planning documents. If mandates or instructions are left open to interpretation, this could cause rifts between personal representatives, beneficiaries, and trustees.
A second source of possible disagreements in your California estate plan involves interference from outside individuals. Someone with an interest in the estate or a frustrated family member may attempt to contest the will or challenge a trustee’s distributions from a trust. If you have no provisions inside your existing estate plan related to challenges, you may leave your loved ones open to legal action, which could delay the total administration of your estate.
Finally, unforeseen financial circumstances may impact your errors due to costs associated with asset distribution, creditors attempting to take a portion of your estate, or taxation. By planning well in advance, you can reduce the possibility of estate planning issues and ensure that your assets are transferred as you intended.
Working with the right financial professionals and estate planning attorney can help to minimize the possible issues and ensure that you have a comprehensive estate plan in place.
