Tips on Avoiding Family Feuds During Estate Planning

Due to the recent signing of the American Taxpayer ReliefAct of 2012, now is the time to review your estate plan in order to mitigatetax exposure, especially if you are a high-net-worth individual or own a familybusiness.  However, estate planning oftencauses family feuds over inheritance that may end up in litigation.  To avoid family feuds over wealth transfers,here are some helpful tactics:

• Fairness isn’t always the best answer.  Don’t split your assets evenly if thecircumstances don’t call for it.
• Transfer assets based on what makes sense forthe individual.
• Use trusts to protect both individual and familyassets.
• Prevent misunderstandings or resentment by beingopen and transparent with family members about your estate plans.
• Don’t wait for the individual with the majorityof the wealth to die before addressing an issue.
• Evaluate the assets that are best transferredsooner rather than later.
• Update your estate plan after significant lifemilestones.
• Choose a professional advisor you can trust thatunderstands your family dynamics.

See E. PatriciaChantler & Wonsun Willey, AvoidingFamily Conflicts During Estate Planning, WealthManagement.com, May 15,2013.