Avoiding Estate And Will Disputes

Will disputes amongst families can result in lengthy and expensive legal proceedings, but ensuring that your estate plan is watertight can help to avoid this. 

As a parent, having your kids fight over their inheritance after you're gone is a worst case scenario for many. While the loss of a loved one is already a stressful and traumatic experience, when money is involved, it can often bring out the worst in us. If this is something you desperately want to avoid for your family, then don’t leave things to chance and ensure that you have taken the right steps in advance when it comes to your end of life wishes, estate planning and the division of your assets. 

Despite public opinion, wills are not just for the rich and famous, or those approaching the later stages of their life. The reality is that once you start accumulating assets - even if it’s just a car - legally binding documentation is necessary if you wish to have a say in how these assets are divided up in the event that you become incapacitated or pass away suddenly. 

If you don’t have a will or estate plan in place, there’s no way to guarantee what happens next in regards to settling your affairs. In Australia, control over your estate reverts to the Public Trustee under state intestacy laws. However, even if you have taken steps to ensure your wishes are clearly outlined in a will or estate plan, it’s not uncommon for members of your family to dispute the terms or conditions if they feel their allotment is unfair. Of course, this can create significant tension amongst other members of your family who may not agree, which is when will disputes can really turn sour. 

Five Tips For Avoiding Will Disputes

If you’re in the process of outlining your wishes for when you’re no longer around, a little bit of foresight can go a long way when it comes to avoiding will disputes. After all, you likely know your family better than anyone, so a few provisions laid out in advance can go a long way when it comes to avoiding inter family disagreements. 

Communication Is Key - It’s not uncommon for people to negatively react to surprises, so aim to avoid too many when outlining the provisions in your will. Don’t treat the next phase of your life as a taboo topic, and instead invite open and honest communication with your family, as their insights and feelings might influence how your will is structured. 

Think About Sentimentality - Assets with some level of emotional attachment are surprisingly the most likely to trigger trouble beyond their monetary value. As an example, determining who gets mum's diamond engagement ring calls for an elevated level of sensitivity and transparency, so have an open dialogue with your family regarding what means how much to whom. 

Discuss Equal Distribution - If there’s one child or sibling that has stayed close to whom to act as a caretaker for an elderly or disabled parent, this is often linked to that child or sibling expecting a higher portion of the assets or inheritance. These contributions should be openly discussed with all siblings and parents so that all parties have clear expectations for equality. 

Enlist A Third Party - If you’re in the process of writing a will and almost expect will disputes or disagreements amongst family members, it’s a good idea to consider enlisting a third party to act as a mediator, executor or trustee. While this person should of course be someone you can trust, they also need to be someone who is impartial or biased regarding distribution. 

Will vs Estate Planning - Wills and estate planning are not the same thing. Estate plans are much more intensive, and state your wishes as to what happens next should you become incapacitated and are unable to make your own decisions. They include more stipulations than standard wills, and include business successions, debts, accounting and taxation settlements. 

To avoid will disputes, try to have clear lines of communication with your recipients while you are still physically and mentally able to. This way, any questions, queries or disagreements can be ironed out while you are still around to share your thought process, and the documents can in turn be amended accordingly should there be any updates. 

Navigating Your Finances With The Professionals 

Whether you’re looking to become a property tycoon, start a business, purchase an existing one, or even re-evaluate where your current enterprise stands, these all require some form of financial know-how if you hope to successfully navigate your legal tax requirements as well as hit your financial and business goals. 

However, if understanding the legalities that surround your business or finances isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many individuals and businesses enlist the services of an accountant in order to free up their time, while knowing that their financial obligations are already taken care of by the professionals. 

Ultimately, the team at Muro believe that every business owner is an entrepreneur. However, accounting does not discriminate - finances break down barriers and are not territorial. If you would like to take a deeper look into your finances, please get in touch with us at Muro today to ensure that you’re on the right path for success.