On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday January 17th, 2023.
Many people plan their estate for their heirs beforehand so that their assets are distributed equally. However, planning beforehand does not ensure that your estate plan will stay protected from lawsuits. With the help of a proper estate planning attorney, you must ensure that your estate plan is devised correctly and cannot be questioned based on any injustice or illegal activity.
How to Lawsuit-Proof Your Estate Plan
Some of the ways to lawsuit-proof your estate plan are listed below.
Treat Siblings Equally
You have to treat all the heirs equally when formulating your estate plan. You attract legal constraints when you cut off an heir or your sibling from the estate plan. Even if you have kids from second or third marriages, you must research and abide by all the laws regarding the distribution of your estate.
Keep Track of Loans and Advances
Loans and debts can lead to many complications if not appropriately stated. If you loan money to one of your heirs, you have to decide beforehand if you want it to be repaid or discharged at your death. Make sure to put your decision in writing or in contract form.
Transfer Business with a Contract
When deciding what to transfer to your siblings or children, you often decide that the businesses are distributed to different children accordingly. When handing over a business to someone, make sure it is in contract form. Carry out the process with written signatures and proof of the transfer.
Check Ownership of What you Leave
When you are leaving your children a part of your estate in your estate plan, make sure you have complete ownership of those assets. At times, due to jointly owned property, there can be confusion regarding the ownership and how the property or assets will be inherited.
Spell Out Disinheritance
If you are excluding any child of ours from the estate plan willingly, make sure you write it clearly in the estate plan. If you do not mention the disinheritance, you can face legal concerns regarding why the legal heir was not included in the will.