Estate planning is a complex process that requires careful consideration and foresight. Even the wealthy and business-savvy can struggle to get it right, as evidenced by recent high-profile cases like Rupert Murdoch’s estate planning turbulence and Warren Buffett’s marital trust complications. With the excellent wealth transfer underway, Baby Boomers are expected to pass on nearly $70 trillion in assets between 2018 and 2042.
This has led to a significant increase in estate litigation, with the State of New York’s court system reporting a 350% rise in contested estate cases between 2016 and 2019. Experts emphasize the importance of addressing potential family disagreements in the planning process. While wills serve as the foundation, trusts can provide greater control over asset distribution and help avoid costly legal disputes.
However, trusts must be thoughtfully drafted to fit individual circumstances. Kevin Ghassomian, a partner at Venable LLP, advises that effective estate planning should account for moments when family members disagree, rather than assuming harmony will last.
Planning for wealth transfer disputes
Cheri Stein, a senior trust officer at Plante Moran Wealth Management, notes that there is no one-size-fits-all solution for trusts. When establishing a trust, experts suggest avoiding multiple trustees, establishing clear decision-making structures, understanding the implications of irrevocability, and considering state laws. Joseph Fresard, an attorney at Simasko Law, warns that having multiple co-trustees can significantly increase the chance of litigation.
Estate planning also plays a crucial role in maintaining family assets, such as a cabin, for future generations. David Gulko shares insights into the steps and considerations necessary to effectively plan for such assets, ensuring they remain within the family. To assist individuals and families in taking control of their legal and financial future, estate planning attorneys like Peter Ligh offer informative webinars and a wide range of tailored services, including wills and trusts, powers of attorney, healthcare directives, probate and trust administration, and estate tax planning.
Planning your estate can be daunting, but with careful consideration and the selection of the right tools and guidance, the process can be smoother and ensure that your assets are distributed according to your wishes. Starting early with your planning helps protect your legacy and provides for your loved ones.