The Cinderella Estate-Planning Problem

Recently, EstatePlanning.com published an article that compared Cinderella to a familiar estate-planning story that has existed since ancient times. The story begins when Cinderella’s stepmother takes control of her husband’s estate after his death. She benefits herself and her two daughters leaving Cinderella with nothing but work to be done. Using Cinderella’s assets is a problem of asset succession that cannot be fully addressed through legislation. Typically, adults are the people managing minor assets. This is often what leads to the Cinderella problem.

However, there are some remedies to this problem. One remedy is the use of ‘fiduciaries’. A ‘guardian ad litem’ represents a minor’s interest in court. Another remedy is the judge. In probate court, judges address this issue by aggressively protecting the interests of minors. Unfortunately, these are not solutions just remedies that address the problem after the problem has already manifested itself. The parents of modern-day Cinderellas failed to plan for common risks and life situations. People who eventually secure a competent attorney do have a cause of action they can bring to court. This planning requires that lawyer is both an advocate and a counselor.

See Ahmed Shaikh, An Estate Plan for Cinderella’s Parents, EstatePlanning.com, Feb. 14, 2013.  

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.