Testators creating or updating estate plans usually have specific personal priorities. They select specific beneficiaries and try to ensure that those parties inherit as much as possible. Unfortunately, probate proceedings can diminish what beneficiaries ultimately inherit.
In some cases, creditor claims for repayment or estate taxes may consume estate resources. Other times, probate costs can diminish the value of an estate. When litigation is necessary to resolve disagreements about an estate, the value of the estate may drop because of court costs.
People thinking about their legacy after they die may want to take steps to prevent litigation that could cost their estate thousands of dollars and harm the relationships that their beneficiaries have with one another. Can people create estate plans that reduce the likelihood of probate conflicts?
Communication is key to conflict minimization
Probate disputes about estate administration often occur due to unmet expectations. Family members of the decedent may have developed a sense of entitlement based on the resources their loved one owned. They may expect to inherit specific assets or a certain percentage of the overall estate.
If their inheritance doesn’t live up to their expectations, they may become resentful and consider contesting the will. Testators who explain their intentions to their family members can limit the likelihood of conflict arising after their passing due to disappointed expectations.
Documents can also deter conflict
It is possible to structure an estate plan in a manner that limits opportunities for litigation. Florida testators can add no-contest clauses to wills or trusts. However, the Florida probate courts do not enforce penalty clauses included in testamentary instruments. Instead, a no-contest clause may solely act as a deterrent to probate litigation.
Other estate planning tactics could help reduce the likelihood of conflict among beneficiaries. People who use trusts, rather than wills, to control the descent of their property limit the likelihood of beneficiaries taking legal action in probate court. Deeds and transfer-on-death designations can keep high-value resources out of probate court and prevent them from becoming a source of probate conflict.
Testators may also need to communicate their intentions to their loved ones to prevent them from feeling disappointed and bitter about what they inherit. Appropriate estate planning tactics can help reduce the likelihood of costly probate litigation.
