Estate planning is a necessary exercise for anyone who wants to avoid leaving their family with potential legal problems upon their death. With a valid estate plan, you legally document how your assets are to be managed and distributed if you become incapacitated or die. Wills, trusts, powers of attorney, and living wills are some of the standard estate planning tools used to carry out an individual’s wishes.
Failing to follow estate planning best practices can allow individuals with bad intentions to manipulate a stressful situation for their own financial gain. When no valid will exists, California probate laws dictate the distribution of a decedent’s assets, which may include relatives you never meant to be beneficiaries of your estate. Often, estate planning mistakes lead to disputes and lawsuits that can permanently damage family relationships and deprive individuals of their rightful inheritance.
The trust and will inheritance lawyers of Albertson & Davidson focus on the complex area of the law that includes California probate laws, estate litigation, probate disputes, beneficiary rights, and California trustee responsibilities. Below is an overview of estate planning mistakes to avoid and pitfalls that lead to legal disputes Many can be avoided with proper estate planning. If you are facing a fight over a will, trust, trustee responsibilities, or wrongful death, contact us today for a complimentary case evaluation. We stand. We fight. We win.
Typical Oversights in Estate Documentation
While do-it-yourself will and estate planning programs are available, it’s better in almost all cases to work with a qualified lawyer and invest in a customized estate plan for you and your family. An experienced estate planning attorney knows the questions to ask to determine your needs and how to execute legal documents to ensure your wishes are properly documented.
Many couples establish living trusts so their families will be able to obtain their inheritance without going through time-consuming probate. Part of properly funding a trust requires executing new real estate deeds, re-titling bank and brokerage accounts, changing beneficiary designations on insurance policies and retirement plans, and executing transfer documents as otherwise necessary to ensure assets are owned, managed, or distributed in the name of the trust.
Recognizing Critical Stakeholders
When dealing with significant estates or specific assets that are meaningful to multiple potential heirs, it is good to share your plans with family members and other intended beneficiaries. Coming to an agreement on a general approach to how family assets should be used can help preserve wealth as it transfers to the next generation. After estate planning is complete, meet with trustees and beneficiaries to explain your intentions and put your thoughts into writing to be preserved with other documents.
The executor of your will, successor trustee(s), and/or agents with powers of attorney must know where to find the documents that allow them to act on your behalf. Create a notebook with instructions and a list of assets; copies of your will and trust documents; powers of attorney; banks; brokerages; the names of financial advisors, accountants, or attorneys; and account numbers or passwords. Keep a copy at your home and another at a different secure location. Your estate planning attorney will likely retain one. Let family members know that this information exists and where it can be found.
Ambiguities and Their Consequences
Legal text can be lengthy and convoluted to ensure it is precise. Ambiguous language in wills and trusts can lead to multiple interpretations, which may lead to family disputes and litigation. If there are errors, such as an incorrect address for real property, the courts may have to resolve the problems. When a California court cannot resolve ambiguities in a will or trust, it may declare the assets involved to be “failed gifts,” which must be distributed to the decedent’s heirs in accordance with the state’s intestate succession laws.
Consistent Documentation and Validation
Inconsistencies sometimes occur when legal documents are executed at different times or by different people. Conflict arises when, for example, the decedent’s will distributes an asset to one beneficiary while another document transfers the asset to someone else. Sometimes, changes are made in one document, and the individual assumes that previous documents are automatically revoked. But this is often not the case. When inconsistencies are litigated, some outcomes are dictated by California statute or case law. For example, if a will names someone to inherit a home, but the property title is a joint tenancy with a right of survivorship that names someone else, the likely result may be that the joint tenant on the title receives the property.
Adapting to Significant Changes in Life
It’s important to revisit an estate plan periodically with an estate planning attorney. You should review wills, trusts, and beneficiary designations after births, deaths, marriages, divorces, and other changes in personal relationships to see whether the documents should be amended. If legal instruments are not properly updated, the decedent’s assets may go to unintended recipients or, in cases of deceased beneficiaries, be distributed according to intestate succession laws. Other reasons to periodically review or revise your estate plan include:
- Financial changes. Significant changes in your income, investments, or real estate holdings may require revisions to how assets are distributed.
- Legal changes. Tax laws and regulations related to trusts and estates are subject to change, and new rules may affect your plans.
Talk to Our Experienced California Trust and Will Litigation Firm
At Albertson & Davidson, LLP, we understand the alarm and frustration of realizing that someone is manipulating the death or incapacity of a loved one for their own financial gain or has been stealing your inheritance. We focus on complex estate litigation cases and have recovered millions of dollars for hundreds of clients in California.
If it looks like the court should step in to settle issues with a decedent’s estate that you should benefit from, contact Albertson & Davidson about representing your interests. We have the knowledge and experience and are ready to invest the time and energy necessary to pursue a positive resolution for you.
Contact Albertson & Davidson today for a free, no-obligation legal consultation with a dedicated estate litigation lawyer. Contact us online or at (855) 928-0542. We pride ourselves on being ready to tackle the toughest cases and make things right for our clients. We Stand. We Fight. We Win.
