It is no surprise that even the most friendly families start having disputes when it comes to money. After their parents pass away, siblings may disagree about the distribution of assets, and one or more may even take it upon themselves to start dipping into the funds. Sometimes, children may start helping themselves to assets even while their parents are alive.
Estate Planning
Planning ahead is the best way to protect assets after death. An estate plan may include a will or trust that details how to distribute the estate after the owner’s death. Parents may also prepare by gifting property directly to a child while they are still alive or by titling assets jointly in a child’s name. Parents should discuss the distribution of their assets with their children so everyone understands their intentions and there are no surprises later. Do not make changes to the will without letting all siblings know about them.
Name an Independent Executor or Fiduciary
One of the best ways to prevent disagreements between siblings is to name an independent executor or fiduciary. Do not name one of the children as executor, as this could lead to misunderstandings or even accusations of mishandling of the estate. If a child is named executor, they should decline the appointment. This will allow the appointment of a third party to oversee the estate. This person could be a trusted friend of the family, an attorney, a CPA, or any other person. It is important to note that the person will need to be paid from the estate.
Prepare for Possible Disputes
Some families may be prone to disagreements, and in some cases, family members already know that there is a likelihood of problems before or after the death of a parent. A sibling may try to get a parent to sign assets into their name or get their name put on a joint bank account or on the deed to the property. Parents should be aware of the pitfalls of these actions and should always consult with an attorney before taking any of these financial steps. Parents can provide all their children with financial details so a single sibling cannot take assets to which they are not entitled.
Minimize Conflict
If you believe that there is a high potential for conflict, it is often helpful to seek professional assistance. An estate planning attorney or a mediator can be of great help in calming conflicts and resolving disputes regarding inheritances. An attorney or mediator will act on behalf of the estate and provide impartial dispute resolution to help parties come to an agreement on disputed issues. You can bring in the mediator or attorney as soon as possible so they can keep disputes from happening. Contact a reputable attorney to assist with estate planning and dispute resolution. Call us today at Moen Sheehan Meyer, Ltd. at (608) 784-8310 or online.