As you build your wealth, you want the confidence that it gets dispersed the way you want upon your death.
If you have planned ahead, unlike the two out of three Americans without any estate planning documentation, according to Caring.com, you feel a sense of security. Unfortunately, how you set up your plan may still lead to a loved one contesting it. The below tips help ensure that does not happen.
1. Include a no-contest clause
One of the easiest ways to avoid your will getting challenged involves including a no-contest clause. It typically states that any heir who contests the will and loses receives nothing. While that clause acts as a deterrent, leaving something of some value to a potentially upset heir may make contesting it an unworthy venture.
2. Communicate decisions
Although you have the right to keep your finances private, staying completely secretive about your estate plan may lead to contempt down the road. Communicating your plans and why you made specific decisions eradicates surprises.
3. Consider a revocable living trust
While a will serves an important purpose, some situations require something more flexible and solid. Many people turn to revocable trusts instead. As a private document, it also means your loved ones get to avoid probate court. With a revocable trust, you still have control of your money and assets but they technically belong to the trust. This type of trust gives you the flexibility to change beneficiaries and move assets while alive.
While you hope your family adheres to your wishes, the loss of a loved one easily brings out different sides of people. Thoughtfully preparing estate plan documents provides added peace of mind.