When it comes to estate planning, trusts are a common component. Unfortunately, if trusts are not done correctly, there can be problems later down the road with beneficiaries and heirs. To avoid disputes and contests, here are a few tips that can protect your estate plan.
Discuss Your Plans with Those Who May Be Impacted
It is important that you communicate with your family members and beneficiaries so that they are familiar with your goals and why you have chosen those goals. It is true that these conversations will be difficult, but it is best to have these conversations early on. If you avoid them, problems occur after your death. It is recommended, however, to have a mediator during these conversations and possibly even consider a family therapist.
Include a Signed Explanation Document
Once you complete your trust with your lawyer, you should draft a document that explains why you have made your decisions. You can opt to do this instead of the aforementioned face-to-face conversations or add this document as supplementary information. You will want to include information as to why you left certain assets to specific people and what your end goals were behind your decisions. Ideally, this document should be handwritten instead of typed, as this helps to prove that you were the one who wrote it and makes it more difficult for someone to challenge its authenticity.
Avoid Including Beneficiaries in Your Estate Planning
During the estate planning process, you should do your best to keep any heirs and beneficiaries out of the planning. When beneficiaries are included in the estate planning process, there can be a significant amount of undue influence added to the process. Unfortunately, elderly individuals who are performing estate planning may be unable to see what is going on. Therefore, you should keep the planning between yourself and your lawyer to ensure there is no kind of undue influence taking place.
Obtain a Psychology Exam
You never want someone to question your mental capacity, but when you have heirs, there is the possibility that your mental capacity may come into question after your death. Therefore, to ensure there is no question that you are of sound mind and body when you are drafting your estate plan, you should visit a doctor and psychologist to be examined and get a clear bill of health in writing. In the event that you do not receive the good news of solid mental capacity, it is best to know early on. This will allow you to name a successor trustee that you trust who can help you in creating your estate plan and trust.
If you have any questions when it comes to elder law planning, contact an estate planning lawyer in your area.
