With the increasing number of divorce cases and lawsuits, it’s important to take the necessary steps to protect your inheritance. It’s in your best interests to see your children inheritance secure and grow with the right investment plan. Whether you have a few thousands of dollars or properties worthy millions, there are many legal steps you can take to avoid future conflicts after your death. They include:
1. Treat all potential beneficiaries equally.
Treating your siblings equally can help you avoid future estate litigation. Everybody should get an equal share no matter how much you love them. Trouble starts once you show signs of partiality or gives out more favor to one family member just because they hold a special place in your heart. You may not like the idea of equal treatment but it’s a good way to protect your inheritance from a lawsuit.
2. Confirm you’re of good sound mind.
Legal lawsuits are common especially when people claim you had no mental capacity to make decisions on your own will. To counter such false claims, get assessed by a qualified physician before singing your will.
3. Take account of a “no contest” clause.
This type of clauses is used to prevent an inheritance lawsuit especially if there is a scheme to start. This clause, therefore, states that in the event of a will contest, then the contender will have their interests forfeited.
4. Know what you have
As much as it sounds ridiculous, it’s important to ensure you have ownership of whatever you plan to leave. Be clear where you have a joint venture and where you have full ownership rights.
5. Get a good attorney.
We are used to a single attorney handling the estate planning for all family members. However, this should be different where the attorney represents another party than the normal testator. Get your own attorney to avoid trouble as the other party may claim the lawyer did secret bidding against the expectations.
6. Hire a corporate executor.
In cases involving uncertain assets, it’s important to hire a corporate executor for your estate. Don’t even think of naming your spouse or child as an executor as this can lead to abuse of power after your death.
7. Include any disinheritance.
If you plan not to give inheritance, then indicate it on the will. However, give no reasons for your intentions as they can be used to challenge your inheritance in court.
8. Decide who receives a particular benefit.
Don’t write your will in general as this will be a recipe for disaster. Instead of saying, ll properties to be shared among everyone’, make it specific on who gets which benefit. A general will leads to frustrated expectations and unfulfilled promises. Give a list of specific assets you want a particular heir to inherit.
9. Keep good records of all loans and advances.
Chances are you loaned some money to one of the family members. Its recommended to record on paper whether the loan was paid, be absolved or repaid after your death. Failure to keep track of this can bring trouble especially when the debtor is an initiator.
10. Use a contract to transfer business.
There are many ways you can give a benefit to your favorite child without disputes in the future. Transfer whatever you want while alive using a contract to the specific child. A contract will indicate everything was purely business and not inheritance.
The above is legal tips on how you can prevent an inheritance lawsuit. Follow the closely to stay on the safe side of the law.