On its face, the estate planning process might seem straightforward. But depending on your needs, vision of the future and your circumstances, the matter can become more complicated than you anticipate. This is especially true if you suspect that a family member or someone else looking to inherit from you will be unhappy with how your estate plan distributes your assets, thereby potentially driving them to challenge the legal validity of your estate plan. If that ends up happening in your case and the challenger is successful, then your distribution plan will be upended, and your assets may fall into the wrong hands.
That can be stressful to think about, but you can plan around the possibility of an estate challenge. In fact, there are several steps you can take now to reduce the risk, protect your assets and your vision of the future and ensure that those who want to inherit receive their fair share of your estate.
How can you prevent an estate plan challenge?
There’s actually a lot that you can do to protect your estate. It’ll take some proactiveness on your part, but taking these steps could be key to protecting the future of your estate and your loved one’s financial well-being:
- Get your doctor’s opinion as to mental capacity: Many estate challenges are based on testamentary capacity. So, if you suffer from a condition like Alzheimer’s or dementia, then you should take extra precautions to ensure that your demonstrating mental clarity at or near the time that your estate plan is executed. One way to do this is to visit your doctor close in time to your estate plan’s execution. That way you’ll have an expert medical opinion as to your overall mental capacity and ability to understand the estate planning tasks ahead of you.
- Gather witnesses to observe execution of estate planning documents: The signing of estate plan documentation should be witnessed, but the more people you have around you at the time of signing the better, especially if they’ll be able to speak to your mental clarity at the time you execute your documentation.
- Give gifts: If you offer gifts to those who you expect to challenge your estate plan, then their acceptance could be considered an acknowledgement that you possess the requisite capacity to dispose of your assets as you see fit. This can be powerful evidence in court should someone actually challenge your estate.
- Use a no-contest clause: These clauses essentially cut an individual out of your inheritance scheme if they try to challenge the validity of your estate plan and are unsuccessful. In some instances, this risk is enough to dissuade disgruntled family members from taking action against your estate.
- Utilize a letter of instruction: This document can spell out the justifications for you estate plan’s asset distribution scheme. This can form a solid basis upon which to demonstrate clear thinking and reasoning when it came to the development of your estate plan.
Create a legally sound estate plan that protects your interests
You need your estate plan to provide you with protections and set your loved ones up for the success that you envision for them. To successfully do so, you’ll need to be aware of the implications of all your estate planning actions. After all, a seemingly minor misstep can upend everything you’ve worked hard to create. That’s why if you’re interested in creating a sound estate plan, then now is the time to fully educate yourself on the process and seek out any help that you may need.
