As the premier fiduciary litigators in Georgia, we have firsthand experience helping families solve conflict. In a recent episode of our “Wealth Matters” radio show, Gaslowitz Frankel partners Adam Gaslowitz, Craig Frankel, and Robert Port answer more questions on how to avoid family disputes regarding money, estates, and businesses.
How Do Spouses Affect Estate Planning?
When crafting a will and trust, an individual might not remember to consider the spouses of their trustees and beneficiaries. Adam Gaslowitz observes that, in his time as an attorney, he’s seen that these spouses of inheritors tend to influence, or may appear to influence, estate planning, which leads to conflict. Nuclear families tend to see less estate planning conflict — these families tend to communicate more, and because the spouses have the same kids, there is less tension in the planning process.
However, over 50% of marriages end in divorce, and of that percentage, 75% will remarry. Blended families are more common than ever, leading to an increase in the number of disputes between parents and their sons-in-law/daughters-in-law. If a testator means for his biological descendants, not their spouses, to inherit, it is important to emphasize that point in the estate plan.
What Stipulations Can I Include in My Will?
A parent may attempt to ensure that their wishes are fulfilled by adding stipulations in their will. These can be helpful in some situations. For example, if a child struggles with drug abuse, stipulations might ensure that a child attends meetings and passes drug tests to receive his inheritance.
However, Craig Frankel suggests that not all stipulations are helpful, and that many can be harmful and hard to enforce. Certain provisions, like marriage and religion, are illegal and unenforceable. Other stipulations can put trustees or executors in a difficult position. It’s one thing to include stipulations for children and grandchildren that you know, but making stipulations for generations down the line, where the world is bound to change, is less useful. The attorneys of Gaslowitz Frankel suggest that provisions should only be used when a child may harm themselves or others.
How Can I Reduce Disputes in My Family Business?
Robert Port shares the sad truth that many small businesses will not survive transferring from parents to children. There are a slew of reasons for this, but first and foremost is that not every child will take the same interest in the family business. Finding someone to take charge may be difficult. Frankel suggests, when making choices about how to transfer the business, to focus less on what is “fair” and what will best match the particular family.
Each child’s role should be established in the estate plan. Have conversations far in advance and set realistic expectations about what each party can expect. Otherwise, there may be a potential conflict between those who are working and those who are not. Port encourages clients to plan to update documents. Many families established business documents when their business first started, and they may not have looked at those documents in thirty years.
Families should consider if they have the structure to continue the business into the next generation. Most businesses fail in the second generation. It may be best to seriously consider selling the business and splitting the cash among beneficiaries. Port points out that “the transfer of wealth from the greatest generation to our generation (boomers) is going to be the largest transfer of wealth in history.”
Port also points out that people are living longer than ever before, meaning that younger generations may be waiting on finances and assets that will not become available until they themselves are retired.
Premier Estate Litigators in the State of Georgia
If you find yourself in an estate dispute, Gaslowitz Frankel LLC are experts in estate litigation. When you contact our law office at 404.892.9797, you’ll be in touch with the premier fiduciary litigators for the state of Georgia.
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Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
