To Disinherit or Not: Alternatives to Cutting a Loved One from Your Will
As an Estate Planning Attorney, I’ve seen more than my fair share of familial challenges. I’ve had clients dealing with everything from chronic illness and sudden death to troubled children, estranged spouses and greedy siblings. I can’t count how many times a frustrated parent, sibling or spouse has plopped in a chair in my office, demanding that we disinherit someone out of anger and frustration. Usually, it’s because they don’t know other options are available.
Cutting someone out of your Will completely isn’t your only option!
The fact is, there are other ways to deal with errant relatives and disinheriting all together could be saved as a last resort:
Something to Lose
For the real troublemakers, your best option may be to leave them something that will be taken away if they contest your estate, instead of leaving them nothing at all. This will also satisfy the requirement that they are at least mentioned in your Estate Plan and give them a choice: take something or risk everything.
Something to Earn
You can also make heirs earn their inheritance – even after you’re gone! This can be anything from requiring college graduation to successful drug testing before the money is doled out.
Some people take longer to grow up and get their act together. You can make an heir wait until they are 30 (or 60 if that what it takes!) or give them multiple chances by staging distributions in increments every 1-5 years. You can also Will a restricted annual or monthly payment (similar to a pension).
Limited Use Inheritances
Some kids should never get any money at all, but you can still leave them money to cover medical expenses, education, purchase of a home, etc. This money will stay in a Trust and be distributed by your executor.
If none of these options work for your unique situation, you still have every right to exclude any family member from your Trust or Will. It’s 100% your choice and don’t let anyone tell you otherwise. If you would like to discuss this – or any other Trust or Will question, contact us now to schedule a consultation.