Publicly fighting over family wealth has indeed become a reoccurring theme in our times. Those family members at war, however, would most likely prefer not to air their dirty laundry, as the perceived greed does not always begin to tell the story. Oftentimes, the root of these costly disputes is deep-seated psychological issues. Perhaps, these issues can be traced all the way back to childhood, where some studies suggest that birth order impacts a child’s temperament. Further, several studies illustrate that these childhood experiences continue to influence children into adulthood. Consequently, these psychological seeds planted in early childhood could be the reason for such legal battles. Setting up a sturdy estate plan can help with some of these issues, but in addition, some wealthy families are setting up family meetings to openly discuss their wealth transfer. These steps alone, however, do not always prevent family disputes.
The potential problem might lie with the parties inability to recognize the function of psychology in the estate planning process. A licensed professional is often needed to address these deep-seated issues, but this comes with its own challenges, namely workable settings and afforded privileges. Further, this interdisciplinary approach to estate planning is not guaranteed to prevent post-mortem disputes over family wealth but could be a beneficial option to those families seeking extra guidance.
See Darren T. Case, Death, Wealth, and the Psychological Anatomy of a Family Dispute, Psych Central, December 13, 2016.
