5 Ways To Prevent Family Dispute Over Inheritance

Dr Ronit Meshie Mai Lami
Created by Dr Ronit Meshie Mai Lami
On Oct 23, 2019
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5 Ways To Prevent Family Dispute Over Inheritance

A complete wealth plan does not simply doesn’t end by moving assets from one generation to the next. A complete wealth plan focuses on the enlightened dreams that you have for the next generations and the people that you wish them to be even in your absence. This plan will also seek to mitigate, resolve or plan to address any concerns, worries and fears that you may have for the next generation. Failing to achieve any of these can arise the need of family conflict resolution to settle things better.

Below are some of the ways you can avoid any family wealth disputes:

  • Communication is key.

Communication is the key for most of issues. Encourage next-generation involvement in the planning process. This may prevent future disputes. Such discussions about the goals establish a process to permit the children to work together in the years to come. The better the communication, clearer will be the claims and cordial will be the relations.

  • Private discussion of client goals.

While you may involve or permit family members to attend planning meetings on occasion, your attorney should always meet with you privately throughout the process to ensure that your specific goals are addressed and understood, and document those goals as needed to provide future guidance.

  • Consider the next generation’s attitudes about money and family relationships.

Like they are involved in the discussions, there views should also be given equal importance. Ask questions like are the heirs ready for the money? Do they get along? Do you have any goals for the next generation? What kind of people do you want your children to be when you are no longer there to guide them? It is the future generation who is going to manage ,therefore, it is important to hear their opinions.

  • Utilize independent tie-breakers for co-trustees when appropriate.

If co-trustees are named in a trust instrument, consider including a majority-rules provision and naming someone to serve as a tie-breaker. This creates an informal dispute resolution process to help resolve any future disputes without going to court.

  • Consider family relationships when selecting successor trustees.

For many families, selecting a son or daughter to act as a successor trustee is the ideal choice. However, for other families, having one sibling oversee the trust administration and the shares to his or her siblings is a spark for future family dispute or disagreement. For these families, a professional trustee may be appropriate to counsel successors and provide them guidance.

Wealth management is not a cakewalk. Proper management is important to prevent any cases of conflict in the future.