There are two sides in the inheritance planning “arena”. The “Money Side” and the “Family Side”. A good inheritance plan takes into account both sides in order to preserve family harmony while preserving the “family money”.
Even in the simplest of inheritance plans, the fallout that ensues from a bad inheritance plan can destroy families and diminish the “family money” in court battles and unnecessary taxes and penalties.
Could these conflicts be avoided or at least minimized? Absolutely! Here are some common issues we see every day and some suggestions for preemptive strikes.
- FAILURE TO FUND THE TRUST PROPERLY
- FAILURE TO SELECT ALL OF THE KIDS AS SUCCESSOR TRUSTEES (UNLESS A VERY GOOD REASON EXISTS TO ONLY APPOINT ONE/SOME OF THEM)
- KEEPING THE TRUST SECRET FROM THE KIDS
- NOT AMENDING HUSBAND-WIFE TRUST TO REMOVE MANDATORY BYPASS TRUST ALLOCATION PROVISIONS
- PRESUMING THE CHILDREN WILL WORK OUT EQUAL DIVISION OF ASSETS AMONG THEMSELVES PEACEFULLY
- MAKING THE “NORMAL” CHILD THE TRUSTEE OF TRUST FOR DISABLED/ADDICTED/FINANCIALLY IMMATURE SIBLING
- IMPROPERLY MAKING THE TRUST THE BENEFICIARY OF THE RETIREMENT PLAN
- LEAVING THE BUSINESS IN EQUAL SHARES TO THE BUSINESS CHILD AND NON-BUSINESS CHILD
- MAKING THE FIRST CHILDREN WAIT UNTIL THE SECOND SPOUSE DIES BEFORE THEY INHERIT
- CREATING A BREEDING GROUND FOR ONE CHILD TO INFLUENCE INHERITANCE DECISIONS