 Provided
by the Law Offices of RICHARD MAYBERRY
MAYBERRY LAW FIRM
2010 Corporate Ridge
McLean, VA 22102
(703)714-1554
Committed to providing the highest quality estate planning legal services for
individuals, families and businesses |
Few life events have the potential to destroy family relationships
like the death of a parent. It can bring out the best or the worst in those
left behind. Perhaps you have heard horror stories about, or even
experienced a family fall-out after the death of a parent. If so, you are
not alone. Inheritance Wars
A recent study* surveyed Americans age 50 and over. Twenty percent of the respondents
cited problems among surviving family members due to their inheritance, or lack thereof.
What assets did they fight over? Most of the fights were over cash assets. The respondents
identified other asset categories fought over as follows: 47% over tangible personal
property (e.g. heirlooms like jewelry, antiques, etc.), 43% over the personal residence,
31% over other real estate, and 11% over investments. Not surprisingly, the study revealed
that prior planning and communication may avoid such family fall-outs. Of the respondents
reporting no conflict, 63% said they had known what to expect ahead of time, with
82% believing the inheritance was fair.
Root Causes
The reasons for family fall-outs vary. Whether it's old-fashioned greed, lifelong sibling
rivalries or the negative influence of in-laws, the potential effect on family
relationships can be nothing short of tragic. Sometimes siblings may never speak to one
another again, resulting in further isolation of their own children as well. Whatever the
root cause, the consequences can poison families for generations.
Planning & Communication
If you love your family and want them to love each other after you are gone, then you must
have the courage to face the reality of your own mortality and implement a proper Life
& Estate Plan in advance. Through such a plan you may control who inherits the assets
you leave behind. Be as specific or as general as you wish. Your Life & Estate Plan
can be tailored to meet your unique objectives for the important people and things in your
life. By communicating your plans to your loved ones now, you may avoid unpleasant
surprises later on
You Can Trust a Trust
Just as every person is unique, every Life & Estate Plan should be unique. As famed
jurist Oliver Wendell Holmes observed "Put not your trust in money, but put your
money in trust." Accordingly, when planning the inheritance for your loved ones,
serious consideration should be given to creating a trust to administer their inheritance.
Basically speaking, a trust is a legally enforceable agreement under which assets are
administered by a trustee of your choosing for the beneficiary or beneficiaries of your
choosing. A recent survey** examined the reasons people create trusts, revealing some
appealing benefits aside from the potential estate tax savings. Survey respondents cited
such benefits as clarifying inheritance distributions (23%), maintaining privacy (15%),
and controlling assets (12%).
If you wish, a trust may even protect the inheritance of your loved ones from potential
divorces, lawsuits and bankruptcies. Oftentimes special family circumstances alone warrant
consideration of trust planning. Examples of such family circumstances include planning
for special needs family members with physical and/or mental challenges, planning
for blended families, and planning for the survival/continuation of the family
business. Without trust planning, a special needs family member may be disqualified
from benefits under certain public or private programs. In blended families, trust
planning can provide for your spouse without disinheriting your children from a previous
marriage. Careful and coordinated trust planning can help preserve a family business, and
also ensure all family members are treated "fairly" in the process.
*Survey by AARP/Scudder Investment Program
**Survey by Gediman Research Group |
