Have you ever faced an estate related legal issue? It’s time-consuming, tiring, and not worth the trouble overall.. But what are the common estate disputes that could impact your process if you have to deal with such a situation?If you’ve asked yourself this question, we have you covered.. We will discuss the most common disputes that turn into estate planning lawsuits.
We will help you understand how quickly such matters can escalate and the best way to handle them professionally. So, let’s first look at what an estate plan is, followed by the most common disputes that turn into estate planning lawsuits.
What Are Estate Plans?
A comprehensive estate plan is meant to ensure that estate assets pass smoothly to beneficiaries according to a deceased person’s final wishes. However, despite careful estate planning, disputes often arise, leading to estate litigation.
Estate disputes can involve allegations of undue influence, mental incapacity, financial abuse, or breach of fiduciary duty, creating tension among family members and other interested parties.
What Happens in Most Estate Disputes?
Many estate disputes result in legal battles in probate court, where interested parties challenge estate planning documents or the actions of executors and trustees.
Without a well-structured estate plan, disputes can spiral into lengthy court battles, draining estate funds and damaging relationships among beneficiaries and other family members.
Understanding the most common disputes that turn into estate planning lawsuits is crucial for protecting an estate from unnecessary legal action.
With the help of an experienced estate planning attorney, families can resolve estate disputes efficiently and ensure that the estate planning process is executed according to the deceased’s wishes.
1. Contested Wills and Challenges to the Validity of Estate Documents
One of the most frequent causes of estate litigation involves contested wills. When a last will and testament is presented in probate court, interested parties may argue that the document is not legally valid for several reasons, such as:
Lack of mental capacity
Claiming that the deceased lacked the ability to understand the implications of their estate planning decisions at the time the will was executed.
Undue influence
Alleging that a person in a position of power pressured or coerced the deceased into changing the will or other legal documents.
Improper execution
Arguing that the will was not properly signed, witnessed, or notarized according to state law.
Case Example
A former spouse challenges a last will that was changed shortly before the deceased’s passing. The court reviews medical records to determine whether the testator had the mental capacity to make such a significant decision.
A properly drafted and legally recognized will, prepared with the assistance of an estate planning attorney, can help avoid such disputes.
2. Breach of Fiduciary Duty by Executors or Trustees
When a trustee fails to fulfill their duties, it can lead to a breach of fiduciary duty claim. Executors and trustees have a legal obligation to manage estate assets and trust assets in the best interests of the beneficiaries.
Common Issues Leading to Fiduciary Disputes
- Mismanagement of estate assets, leading to financial loss.
- Failure to provide financial records or communicate with beneficiaries.
- Self-dealing, where a trustee prioritizes personal gain over the trust’s intended purpose.
- Disregarding beneficiary designations or altering the terms of a trust without authority.
Interested party challenges often arise when estate planning documents do not clearly define the responsibilities of an executor or trustee.
Legal Consequences
If a trustee is found to have mismanaged trust assets, the court may order removal of the trustee, financial restitution, and legal action against the individual.
Proper trust administration and careful planning with an estate planning attorney can prevent these disputes.
3. Disputes Over Trusts and Trust Administration
Trust disputes occur when trust beneficiaries or other interested parties disagree about how the trust is being administered. Issues may arise from poor planning or reckless decisions by trustees.
Common Trust Disputes
- Vagueness in the trust document leading to differing opinions on distribution.
- A trustee fails to distribute assets as instructed.
- Financial abuse involving improper withdrawals from the trust.
- Beneficiaries claim they were unfairly excluded from the trust.
Case Example
A trustee refuses to distribute sufficient assets to a beneficiary despite clear instructions in the trust document. The beneficiary files a lawsuit, and the probate court orders the trustee to comply with the trust administration rules. However, they need to know the 5 essential evidence required in estate planning lawsuits.
An experienced estate planning attorney plays a vital role in drafting a clear and enforceable trust that prevents such disputes.
4. Guardianship Disputes Over Minor Children
Guardianship disputes often arise when minor children are left without a clearly designated guardian in the event of a parent’s death. When other family members disagree on who should assume guardianship, legal battles may ensue.
Reasons for Guardianship Disputes
- A legally valid will does not name a guardian for minor children.
- Interested parties argue that a selected guardian is unfit or financially incapable.
- A significant life change causes a conflict regarding who should care for the children.
Legal Implications
In such cases, the probate court makes decisions based on the best interests of the children. Parents can avoid these disputes by including clear guardianship designations in their estate planning documents.
5. Disputes Over Beneficiary Designations
Beneficiary designations determine who receives certain estate assets upon the deceased person’s passing. These designations apply to:
- Life insurance policies
- Retirement accounts (e.g., IRAs, 401(k)s)
- Bank accounts with payable-on-death (POD) instructions
Conflicts occur when beneficiary designations do not align with the deceased’s final wishes, leading to disputes among interested parties.
Example of a Common Beneficiary Dispute
A parent names one child as the sole beneficiary of their life insurance policy, but their estate documents divide assets equally among all children. Other family members challenge the designation in court, claiming the parent’s intent was misrepresented.
Proper estate planning ensures that all assets pass according to the deceased’s wishes, reducing the likelihood of such disputes.
6. Claims of Undue Influence or Mental Incapacity
Allegations of undue influence or lack of mental capacity are serious claims that can lead to estate litigation.
Undue Influence Cases
- A caretaker pressures a person to change their will in their favor.
- A former spouse manipulates a vulnerable person into updating their estate plan.
- A person suffering from cognitive decline is persuaded to leave assets to one interested party over others.
Legal Implications
If the court determines that undue influence or mental incapacity played a role in the estate planning process, the will or trust may be deemed invalid.
Careful estate planning with an attorney in fact ensures that estate documents remain legally valid and protected from challenges.
Preventing Estate Disputes Through Careful Planning
Many estate disputes can be prevented through careful estate planning. Steps to reduce the risk of legal battles include:
- Working with an experienced estate planning attorney to draft clear, legally binding documents.
- Keeping estate documents updated after a significant life change, such as second marriages, divorces, or financial shifts.
- Appointing trustworthy executors and trustees who will act in the best interests of beneficiaries.
- Discussing estate plans with family members in advance to minimize hurt feelings and misunderstandings.
Final Thoughts
Estate disputes can be emotionally and financially draining. Without proper planning, interested parties may challenge estate documents, leading to probate court battles and contested wills.
The most common disputes that turn into estate planning lawsuits require professional help. Therefore, we recommend seeking help from a reliable estate planning lawyer.
Get Legal Help for Estate Disputes with BLG
At Bourassa Law Group, our experienced estate planning attorneys help families create legally recognized estate plans that withstand legal challenges.
Contact Bourassa Law Group today for a free consultation. Protect your estate, your loved ones, and your final wishes.
1-800-870-8910