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Estate planning can be a simple or complex process.  It depends upon the size and composition of your estate, as well as the situation of your family.  No two families are the same or have the same set of circumstances; however, there are some basic estate plans that most people follow.

No Plan:

This is certainly not recommended, but some people actually decide not to plan their estate at all.  In this case, no will is written, and the state will then determine who will inherit the property.  In most cases it will be divided in some manner between the spouse and children.

Joint Tenancy Distribution:

Another option is to put all property into joint tenancy where the surviving spouse can inherit all the property.  This is a good option for a small estate, but all property will have to be held in joint tenancy.  If children are involved in joint tenancy, though, there can be problems if the child is involved in a bankruptcy or divorce, or if the child dies before the parents.

“I Love You” Will:

A will that is written to ensure all assets are distributed to the surviving spouse is often called an “I Love You” will.  These plans can be sufficient if the total assets of the couple fall under $2,000,000.  According to current tax laws, in this case, no estate taxes would be due upon the death of the second spouse and the assets would be left to the children equally.  It should be clear, though, that the children remain unprotected in this will.  The surviving spouse could lose the property or spend the money.

Complex Will:

Many couples use complex wills when they have divided their property ownership equally between themselves.  This is useful when the combined estates are worth more than $2,000,000 and when you wish to make specific provisions for the children.  Particular assets can be set aside for the children, protecting them if the spouse remarries or otherwise consumes the estate prior to death.

Revocable Living Trust:

Many people these days choose a Revocable Living Trust as the plan for their estate.  It is preferred because it places assets outside the probate process, saving survivors thousands of dollars. In this plan trustees are designated, as well as beneficiaries.  This plan also protects the assets from law suits, which is not the case of a typical will.

Irrevocable Trust:

An Irrevocable Trust (IT) is a trust established during your lifetime to establish a trust for your beneficiaries and avoid estate taxes.  Essentially, an IR removes property, irrevocably, from your list of assets.  This is a final and irrevocable step.  Assets cannot be reclaimed, nor can the conditions of the trust be modified once it has been established.

Summary:

When thinking about which plan to use for estate distribution, you should keep in mind that a typical will does not protect your assets from adverse actions, such as sibling rivalry, the remarriage of a surviving spouse, and law suits. You will need to establish a RLT to protect your assets.  In addition to planning how to distribute your estate, you will also want to consider who your beneficiaries will be, as well as the executor of your estate.  It is helpful to consult an estate planning professional, when considering how to divide your estate; however, there are online estate distribution services available which can help your children divide the remains of your estate not accounted for in a standard will.  This process can often be wrought with emotion.  An online estate distribution service, such as www.edivvyup.com, can help ensure your estate is distributed without the relationship conflicts that sometimes occur with traditional methods of estate distribution.

Estate Distribution

Estate planning involves outlining what you want to happen to your estate after you die.  It ensures that after you die everything will be taken care of as you wish and the taxes you have to pay will be minimized.  The goal is to have the most money possible left, after the estate has been settled, to pass on to your beneficiaries.

Depending upon your estate and your circumstances, you may want to contact an attorney who specializes in estate-planning matters. This can be costly, though, and many estate planning strategies don’t require an attorney.  In order to find out what is going to work best for you, you should educate yourself on the options available.  There is plenty of information available online, and resources such as www.edivvyup.com offer quick and easy methods of estate distribution.

If you have children who are minors, you’ll need to appoint a guardian who will care for them in the event that you and your spouse both die.   This guardian will be named in your will.  You want to make absolutely certain you don’t die without a will, or the court will then be responsible for determining who will care for your children.  Even if you can’t make a decision at this time about who you want to raise your children, you should at least appoint someone you trust as guardian.  This person can then decide later.

Even if you don’t have children, you need to have a will, because it gives instructions on how to care for and distribute your assets.  If you die without a will, your state will decide how to distribute your money.  This means your friends and family may receive nothing!  If you have no living relatives, the state will take the money itself.  If you have no will, your heirs will be powerless, and the state will appoint an administrator to supervise the distribution of your assets.  This will come with a steep fee.
It is a good idea to add a living will and a medical power of attorney to your will.  The living will is a place for you to state which life-support measures you prefer, if any.  A medical power of attorney will allow you to name someone you trust as having the authority to make decisions regarding your health care.

You don’t need an attorney to make a legal will.  You can find the same software packages most attorneys use to create wills and living trusts yourself online.  What makes a will valid is having it witnessed.  The number of witnesses required varies per state, so check the regulations where you live.  It’s not required, but it is a good idea to have your will notarized as well.  If preparing the will on your own seems daunting, why not have a paralegal do it for you.  They will charge much less, and they are perfectly capable of preparing the same documents.   Make sure you give copies of your will to the guardians and executors named therein.

If there isn’t anyone you feel would be appropriate to act as trustee or executor of your estate, you can always use a corporate fiduciary, which is simply a professional serving in this capacity.  There will be a fee involved, but there are also advantages to having a professional manage your estate settlement and distribution.

Here are a few reasons why a fiduciary trust might be right for you:
It’s difficult to place the burden of estate management on the shoulders of a friend or family member.  It’s a big responsibility.
If you have a friend or family member who knows you, your beneficiaries, and your estate well, you can name him as co-executor.

• A professional will be familiar with current tax laws, which change on a regular basis.
• A professional will always be available, and he will not have the emotional attachment to cloud his judgment.
• A will is about more than just who will get what part of an estate.

The choice of executor is critical since it involves many aspects of estate management.  A wise choice can save beneficiaries needless worry in the long run.

Estate Planning

Choosing an executor is an important decision, since this person will be responsible for making financial decisions regarding your estate and distributing assets, in the event of your death.  A spouse, child, or good friend may seem like the most likely candidate for your executor; however, depending upon how complex your estate and business affairs are, you may need to look beyond family and close friends to find the person who can best manage your estate.  In some cases, a professional may be the best choice; however, it is a good idea to have an executor who knows you and your family well, if possible.  This makes it easier to ensure that your wishes will be followed and your family will be taken care of in the method you would do yourself, if you were around.

Estate settlement can be a complicated process, and it can take a long time.  In many cases, it lasts over a couple of years.  For this reason, it is important to make sure the person you’ve named as executor is truly willing to take on the responsibility.  Additionally, you will want an executor who is trustworthy and has a savvy business mind, specifically when it comes to taxes and investing.

The executor’s first task will be to locate your original signed will.  After carefully going through the will, the executor will notify the family and friends of the deceased that they have an interest in this estate.  The executor will use assets from the estate to pay the funeral expenses.  These details should be outlined in the will, if it was created properly to begin with.

The next task of the executor will be to take inventory of and secure the remaining assets of the estate.  This will include taking care of real estate that is not jointly owned and paying bills that are related to the property, until such time as the property can be transferred to another entity or sold.

If there is a business included in the estate, the will should include terms outlining the passing of the business ownership.  Maintaining the business is NOT the task of the executor.

The executor will be responsible for paying any debts owed by the estate.  This includes such tasks as paying taxes and notifying creditors of the death.  The executor will have to file income tax and estate tax returns for the deceased, and any taxes that are due will come from the estate.  This may require a liquidation of assets, such as selling property, stocks, or bonds.

The executor’s last task will be distribution of assets to the beneficiaries of the estate.  This may also include advice or guidance on investment of these assets, which is why it is nice to have an executor with a sound knowledge of investments.  It is important for the executor to understand that if they accept this position they are also accepting responsibility for carrying out the wishes of the deceased; however, the probate court will still control the executorship and possibly require the executor to file reports or obtain approval for asset distribution.  Executors may certainly obtain a fee (professionals certainly will), and this should be discussed with the candidate before he is named.

If you have someone you’d like to name as executor but are unsure if he has the capacity to perform all of the tasks necessary, you can set up a dual executorship (also called co-executors).  For example, you may have one executor for your business and another for your personal affairs. You also have the option of designating a professional to assist your executor, or have the bank serve as your executor. When it comes to distribution of assets, there are many helpful sites online, such as  www.edivvyup.com.

Estate Planning

Estate planning involves determining where your assets will go when you die. It also involves ensuring those you love are cared for when you’re no longer around to do so.  The reasons for estate planning haven’t changed, but the face of estate planning looks different today than it did twenty years ago.  Here are a few current trends in estate planning:

The Charitable Trust: The charitable trust has become extremely popular, largely because of its tax incentive.  There are other reasons to set up a charitable trust, though.  It is simply a great way to support the charity of your choice.  Today’s generation of young retirees are concerned about giving back to society.  This could come in the form of a church or temple, or a cause of some sort.  Since so many people are including charities in their day to day lives, by volunteering time and/or funds, it is reasonable to assume that they would continue to provide for the causes that are important to them after their death, in a monetary way.

One of the benefits of a charitable trust is the fact that it provides a stream of income for you to transfer to the charity of your choice throughout your lifetime, ensuring that you always have funds available to support the causes that are important to you.  Then when you die, the remaining funds will be transferred directly to the established charity.  In reality, trusts involve a few slightly more complex considerations, but if you have a group of professionals who really know what they’re doing set up and manage your charitable trust, you and your charity can both benefit.

The Living Trust: Thinking about death is never fun, but you should try to think of estate planning as just another step in the financial planning process of the living.  And setting up a living trust is one of the most important and first steps you should take when planning your estate distribution.  In simple terms, setting up a living trust allows you to be remembered in just the way you choose.  If you want to support a particular charity, you can.  If you want to provide for your loved ones, you can.

Basically, a living trust is a method of transferring your assets from one person to another.  These days it is possible to set up a living trust with great ease and little expense online.

Living Will:  A living will is an important part of estate planning.  Everyone who is of legal age should have a living will, regardless of their age or circumstance in life. A living will provides those who love you a list of instructions detailing your wishes about treatment for yourself when you’re unable to state your wishes yourself.  It describes exactly what forms of treatment would and would not be acceptable for you.  Most importantly it describes whether you would prefer to be kept alive through artificial means, should your status require such a decision.

As you can imagine, these decisions are not easy on your family, whatever the terms of your will.  For this reason, it is important to discuss the conditions of your living will with family members before the time comes to act upon it.  If you communicate your desires with your loved ones, it will make the decision easier for them, and it will reassure them that what you’ve written down on paper is, in fact, what you truly desire.

An important part of the living will is a medical power of attorney, which is basically another person to act on behalf of you, when you are no longer able to communicate your wishes.

Estate Planning

Most of us reach a time in our lives where we find ourselves caring for young children and older parents at the same time.  There’s a lot of stress involved with juggling the needs of two such different groups.  One thing you can do to make caring for your parents easier down the road is talk to them about estate planning.  It’s a difficult conversation to have, but it can make an enormous difference after a parent dies.  If you plan now, you’ll have much less to juggle later.  You might even find that your parents appreciate the help in putting their affairs in order.  Although it isn’t a pleasant topic, being organized usually makes everyone feel more secure and comfortable.

How on earth do you begin a conversation about estate planning with your parents?  Here are a few questions you can ask:

Are you comfortable about your financial situation?  Would talking with a financial planner make you feel better about your future?

Do you have an estate plan?

Who would you like to have handle your finances if you become ill?

If you become seriously ill, what would you like done and NOT done for your care?

Do you feel you have enough health insurance?

Do you feel your doctor is knowledgeable about the care of older patients?

Can I do something to make your home more comfortable for you?

Are you comfortable driving?

Can you share thoughts about your funeral?

Do you have a list of all your important information?  If not, can you compile one?

Your parents may not have all the answers to these questions, but this is a great place to start to get things put in order.  Most importantly, it starts the lines of communication flowing about estate planning.  One excellent way to begin this process is to create your own estate plan and then discuss it with your parents.  This way you’ll be familiar enough with the process that you can give help as needed.

There’s more to estate planning than having a will, although that is important.  Estate planning is a continuous process of revising and keeping current all the information necessary to alleviate the financial impact of your death upon your loved ones.  If you don’t take precautions, your beneficiaries can end up paying nearly 50% of your assets in estate taxes.  A smart plan will not only reduce the taxes, but it will also help your family understand and prepare for many of the difficult issues that tend to arise when settling an estate.

If you die without a will, it is called dying intestate.  In this case, your estate will go through probate, which means that your family will have to go through a long, expensive court process to claim ownership of your belongings.  A will can help avoid some of the difficulties of this process, because it gives you control over distribution of your assets.  Additionally, a will allows you to name a guardian for young children and an executor of your finances.

As you can see, a will is important; however, it won’t keep you from avoiding those exorbitant estate taxes.  For that you need to look at other options, such as trusts, charitable donations, and gifting plans.  Your attorney can discuss the options with you and help you determine which type of plan is best for you.

Estate planning is the best way for you to care for your loved ones, even after your death. Although the conversation may not be pleasant, the legal and financial burden will be much worse for your loved ones if you have made no provisions for your estate distribution.  Estate planning makes everyone more comfortable in the long run.

Estate Planning

The problem with being responsible and financially capable is that it makes you more likely to be asked, at some point in your life, to become an executor or trustee.  If you’re good with management or business affairs, it may seem a simple matter to manage an estate or trust for a friend or family member; however, you could become involved in situations of serious aggravation and conflict resolution—even lawsuits.

As an executor, you are the one who will be called in to mediate family battles when the will doesn’t specifically state who should inherit what.  The most difficult thing about the role of an executor has nothing to do with lawyers or distribution of the money; it’s the distribution of personal property that causes most of the conflicts.  Relatives can become highly emotional over objects that would seem worthless to anyone else.

Another consideration is the length of time the role of executor can last.  It can be a few months to a few years.  You may not be aware of the extent of involvement an executor has in an estate.  Here are some of the duties of an executor:

• Locating the assets of the deceased and setting a monetary value to them
• Locating and paying creditors
• Filing tax returns for the estate, if applicable
• Ensuring that all real estate and money remaining, after fees and expenses have been taken care of, is properly distributed to the heirs, according to the terms set forth in the will.

If you’re in charge of an ongoing trust, your job can be even more complex.  And it can be a job that lasts for decades, as the duties of this type of executor don’t necessarily end upon the death of the settler.  You’ll be the one who’s responsible for investing the funds that are held in the trust and making the appropriate distributions, when the time comes.  You’ll also have to file tax returns on the trust each year.  As it would seem, the trustee’s job is also more apt to involve conflict resolution.

Many states now allow executors to invest trust money in riskier areas, but this leaves the trustees vulnerable on both ends:  If they lose money on investments that are too risky, the beneficiaries can sue them.  On the other hand, they can also be sued if they don’t take enough risk to earn income on the funds.  Whenever a trustee is determined not to have managed a trust properly, he can be held personally liable and sued.  Additionally, if you’re the executor of an estate that is noted to have filed tax returns that are incorrect, any additional money that is owed to the IRS may come out of your own pocket.

All of this doesn’t mean that you should necessarily turn down the job of trustee or executor.  Most people who have small estates don’t have any choice but to ask a friend or family member to take on the responsibility, because they don’t have enough money to pay the fees that a professional would require.  And these estates are easier to manage.  Even those who have large estates usually choose someone they know and trust oversee their affairs.

The bottom line is that potential executors need to weigh the pros and cons of managing an estate.
Ask yourself these questions:

• How likely is it that this family will have conflict over the estate or trust management and distribution?
• How close are you with the person who is asking you to manage his estate?
• Do you feel a sense of responsibility to him and his family?
• Is there anyone else who can do this job for them?

When you’ve weighed the options, if you don’t feel you can handle the responsibility, it is important to say no.  In many cases, though, things will go fine.  And if you do run into difficulty, a competent attorney can help guide you through the process of managing an estate.  Even so, there are a few indicators that you might want to reconsider accepting the responsibilities of executor or trustee:
You haven’t been given a copy of the will or trust to read before making a decision to accept the responsibility.
Someone is being disinherited.  If the will is properly written, a disinheritance clause can stand up in court, but you may not want to be the one to break the bad news.  Disinheritance clauses will inevitably cause hurt feelings and increase the chances of a lawsuit.
Family tension already exists.  If the family can’t get along even when the owner of the estate is alive, things are sure to be difficult when he dies.
Someone in the family has drug, alcohol, or mental problems.
The person who’s asking you isn’t organized and thorough.  If you have to research and hunt for documents, property or other assets, it can be an enormous task.
You’re asked to be trustee over the money of a sibling.

If, after considering the job carefully, you determine to take the position of executor or trustee, use all the resources available to you.  There are some great new online sites, such as www.edivvyup.com, that can take the pain and guesswork out of estate distribution.

Estate Distribution

Auctions have been occurring for ages.  In fact, the first auction is generally believed to have been about 500 BC in Babylon.  These days there are some similarities to the ancient auctions, but there are also many differences.  For one thing, auctions are now automated and even occur via the internet.  So how do you choose between having a traditional “live” auction or an internet auction?

Here are a few pointers:

Which type of auction you need depends largely on what it is that you will be selling.  If you have a large amount of one type of product, it might be best to sell the items in a larger distribution area, such as the internet.  On the other hand, many products need to be seen to truly be appreciated.  In this case a traditional auction might be better for you.  There are even times when both types of auctions will work best for you—selling some items in the traditional method and selling others online.

A Live Auction
In a live auction, bidders will receive bid cards from a cashier.  This is the only way they will be allowed to participate.  They’ll probably have to leave a cash deposit to receive a bid card.  When the auction is about to begin, the auctioneer will announce the terms of the sale, so all bidders will be aware of their responsibilities.  When a bidder would like to bid on an item, he simply raises his hand or bidder card, and the auctioneer will then acknowledge the bid publicly.
Under certain cases bidders will be allowed to place bids by phone, in which case the bidder will be recognized by the person handling the phones, and the auctioneer will make the acknowledgement public.  There are a few auctions that are “live only,” which means there is no online catalog available and no phone bids will be accepted, but these are rare.
Once an item has been sold, the merchandise will be marked with the winner’s number, and the auctioneer will tell the clerk how much the bidder agreed to pay for the item.  This information will be recorded and given to the cashier.  The bidder will be required to pay the cashier by cash or cashier’s check.  The item must be removed from the auction property by the bidder immediately after it has been purchased.

An Internet Auction
Most internet auctions work on the same basic principles as live auctions, with a few important differences.  The most obvious difference is that instead of being held in a building, internet auctions are all virtual.  Sellers, or their representatives, upload the items to the website and set the price.  Internet bidders then log into their accounts on the day of the auction and bid.  The seller also sets the time the auction will last, typically a few hours.

Just like with live auctions, bidders will have to register and provide a deposit.  At any time during the auction bidders can log into their accounts and place a maximum price, which is the top amount they are willing to pay for this item.  This amount is kept confidential from other bidders.  This is helpful because it keeps you from having to remain online for the entire length of the auction to keep from being outbid.  You can place your maximum bid and then log off.  If you are the highest bidder, the auction item will be yours.

There are many online auction sites to help with estate distribution, one of the best new sites is www.edivvyup.com.  Visit our site for more answers about online auctions.

Estate Distribution divide estate, Estate Planning

So you’re great with investments, and managing financial affairs, but would you make a good trustee?  There’s no greater honor than being asked to care for someone’s estate in the event of their death, but being a trustee is a difficult job, because you will be responsible for investing and managing the assets of a trust wisely enough to see to the welfare of its beneficiaries.  You may, in fact, be the perfect choice for this job.  After all, if you know the guarantor well, you probably know what her financial state is, and you are probably familiar with her philosophy regarding finances.  Certainly you’re honest and trustworthy, and if you work with finances for a living, you may have all of the necessary equipment and resources to be a great trustee.  Before making a decision, though, here are a few items to consider:

What will your duties be?

Basically, trustees do three things: manage, invest, and preserve the assets in the trust for the sake of the beneficiaries; keep accurate and thorough records and file tax returns; and make the necessary distribution of assets.  The duties of a trustee may last for a few months, if the assets are to be directly distributed to beneficiaries, or it can last for the lifetime of the beneficiaries.  Make sure you know exactly how long your commitment will last.

How will your performance as trustee be judged?

You can be held personally liable for performance that is considered either too risky or not risky enough, but who will be making that determination?  It could be an unhappy beneficiary.  There is nothing to keep your actions from being challenged, but if you keep accurate records of each transaction, as well as the thought process behind the decisions you make as trustee, it will be more difficult for your judgment to be questioned.

Compensation?

Trustees are certainly entitled to compensation, but it may not be comparable to the time and energy you will expend in managing this trust.  Additionally, will you be receiving payment for one job while performing two?  For example, you may be asked to act as trustee and CPA, if that is your profession.  If you act in two capacities, you should be paid for both, but this needs to be discussed before you accept the position.  It also needs to be clearly outlined in the terms of the trust.

Will you serve alone?

In some cases, there may be more than one trustee for a trust.  For example, if the grantor owns a business, he may have one trustee to manage that part of his estate and another to manage his personal assets.  Having more than one trustee is often wise.  Having too many, though, can become unwieldy.
What type of assets will you be managing?
Obviously you’re good with finances, or you wouldn’t be chosen as a trustee in the first place, but estates can be comprised of many various types of assets.  What is your area of expertise?  Compare it with the composition of the estate you’ll be managing.  You are certainly allowed to solicit expert advice, if needed, but if you have to spend a lot of time on research, this may be a job that takes up too much of your time.

How discretionary will your powers be?

Many trusts will have wording that allows the trustee to distribute as much income as is necessary for the “health, education, and welfare” of the beneficiary.  Although this phrasing is typical, it is not necessarily descriptive.  Have the grantor draft a non-binding letter that will not be a part of the trust document but will shed some light on the particular ways the grantor expects the trustee to distribute funds.

Meet the family.

If you don’t already know the family, meet them.  If you do know them, make sure they know you have been asked to serve as trustee.  It will make the difficult time of the grantor’s death a little easier if there are no surprises.  Encourage the grantor to explain to his beneficiaries exactly why you’ve been selected to act as trustee.

Estate Planning Estate Planning, estate trustee

When our loved ones pass away, we often long for them the rest of our lives.  Even those in ancient times found a way to honor their dead and still keep their legacy alive.  Everyone should have a traditional estate plan, including a will, trusts, executors, trustees, guardians, and an estate distribution plan.  But these days there are many non-traditional aspects of estate planning that you may or may not be aware of.  Here are just a few:

Online Memorial Sites: These sites offer you a way to remember those you love and share their memories with others.  You can create web pages with music, photos, and essays about the dead.  Some sites even allow you to post memorial videos or create memorial books.  Some sites let you create a family tree.  There are even sites with chat rooms for the recently bereaved, as well as ways to send e-sympathy cards.  Most of these sites are free of charge, though some charge a monthly fee if you plan to archive your creations long-term.

Online Information Databases: When putting together an estate plan, many people don’t think about listing online information, such as login names and passwords to online accounts. Your loved ones may need access to these sites when you’re gone, though.  Many people today bank online, use online stock brokers, or conduct other business online—through eBay or PayPal, for instance.  The executor of your estate will need to have the login information in order to close these accounts.  Getting this kind of access without login information can be extremely difficult, and it may cost money (to provide another copy of the death certificate, for example).  Leaving clear access will make the executor’s job so much easier.

Your loved ones may also want to retrieve contacts from your email account, to let them know of your passing.  They may also want to retrieve photos from your online photo collections or post a final entry onto your blog.  Each internet site makes its own rules about providing a deceased’s account information. In order to access a Gmail account, Google requires proof of death and provides access only to an estate administrator.  Facebook won’t provide account access at all, but it will put the account in a “memorial state.”  This information doesn’t have to be kept online.  It can be kept with the other estate documents in a safe deposit box or a home safe.

Online Estate Distribution: How often do we hear horror stories about the distribution of personal property after the death of a loved one.  The problem is that a death is an already emotional time, and if you add to that the emotional attachment to items that some siblings have, you can end up with bickering and hurt feelings during the distribution process.  It would be so much easier if all of the heirs could divide up the personal property in a manner that was equal and fair to everyone.

This is where online distribution sites such as www.eDivvyup.com come in.  This is an online auction site that offers a modern alternative to the traditional estate auction.  eDivvyUp allows an estate manager to register the estate, catalog and photograph the available items, and place them on the site.  Then each family member is allowed to participate in the auction.  The way eDivvyUp keeps things fair is by assigning each family member an equal number of points to spend.  At the end of the auction, the estate manager will distribute the property to those who won each item.

Green Funerals: Many of us try very hard to lives that are environmentally friendly.  We drive hybrid cars, recycle, compost, and even bring our own grocery bags when we shop.  Did you know that you can continue to help the environment when you die?  Traditional funeral methods are extremely harsh on the environment.  Embalming, expensive caskets, vaults, and emissions from crematories all have a destructive effect on Mother Earth. Many places offer “green” burials, such as using wooden boxes or choosing cemeteries that don’t require vaults.  If you plan, there are ways to continue to be green, even after you’re gone.

Estate Planning Estate Planning, executor, retirement planning

 

Many parents worry about how their children will feel about the terms of their will, especially if they choose not to leave the bulk of their estate to their children.  Some parents choose to place their money in other areas, such as charities or trusts.  This can cause hurt feelings, especially in the emotional conditions surrounding the death of a loved one.  It can even cause a rift between siblings, passing on to their children and beyond.

A will is not easy to contest.  In fact, there are really only two ways this can be accomplished.  Either you must prove that the person who made the will was not of sound mind, or you must prove that the will was made under duress, usually by someone else with a vested interest in the estate.  Regardless of whether or not your children are successful in contesting the will, the estate will suffer, and your children will suffer too.  Legal proceedings waste time and money.  There are a few things you can do while you’re still alive to avoid having your will challenged by unhappy siblings.

The most important way to avoid sibling conflict is to communicate.  It sounds simple, but in reality it isn’t—if it were, more people would do it.  Talking about the terms of a will is uncomfortable for two reasons.  First, the death of a loved one is something that is uncomfortable to even think about, much less discuss.  Because of this, parents and children alike hesitate to have these types of discussions.  Secondly, if you have a piece of property, whether real or personal, that you know will be valuable to more than one person, making a decision on who gets what can be hard.  On the surface it may seem easier to wait and let your executor break the uncomfortable news.  In reality, although it may be easier for you, it will end up being more difficult for those you love.  And considering how difficult this time will be for them anyway, you might want to find the courage to have this discussion now.  Avoiding a surprise is one way to avoid conflict.

Another thing you can do to minimize sibling conflict surrounding the distribution of your estate is to teach your children the true value of property.  From the time they’re very young, involve them in charity and philanthropy.  If you teach children the principle of service and giving when they’re small, as they grow they will understand that your legacy includes generosity to others.  In this way, charity becomes a family mission, and your children will understand your decision to give to someone other than them, when the time comes.  If philanthropy is important to you, make sure it becomes important to your children by involving them in the process as they grow.  This will allow you to make the world a better place as a family.

Make sure your updated will is the only will that exists.  As time goes on, our circumstances and ideas change.  Because of this, a will is a living, breathing entity, and we may find ourselves updating it and changing it frequently.  Keeping your will current is wise, but not destroying wills that are out of date is foolish.  If someone finds an old will after your death, there can be confusion and cause for conflict or discussion about your true desires.  

Provide your family and friends with a detailed explanation of why you’ve chosen to distribute your estate as you have.  Often having an understanding of why you’ve done what you’ve done is all your family will need.  Remember, you won’t be around to discuss your decisions with them at this point.  So if you can’t do it in advance, leave a letter or video tape expressing your feelings for each of your family members, as well as the motives behind your estate distribution.  

Finally, take advantage of new resources that provide equitable estate distribution.  If you just can’t make a decision about who gets what, try using an online auction forum such as www.edivvyup.com.  This can take the conflict and confusion out of asset distribution.  It is easy and it is fair for everyone involved.

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