Family dynamics are challenging for many Americans, and this can even extend to what happens when you pass away. Whether you have a difficult relationship with one person or you're estranged from your entire family, disinheriting them from your will is tricky. State inheritance rules may get in the way. Your family can contest the will. And you risk deepening fractures between survivors.
What can you do in order to avoid leaving your hard-earned estate to someone you don't like? Here are a few tips for successful disinheritance.
1. Make It Clear. It's tempting to simply leave out a person you wish to disinherit. However, this can backfire. The person may contest the will, arguing that you simply forgot them or that it's implied that they are included in some way. The best way to disinherit someone is to specifically state in your will that you have chosen not to leave them anything. it's awkward, but it helps prevent contests.
2. Check the Rules. Did you know that state inheritance laws may prevent you from disinheriting someone? In fact, most states weigh in on disinheriting your spouse or minor children, stipulating that these cannot be completely left out. Even if you're estranged from your spouse or teen, then, you may have to meet minimum standards and accept that.
3. Add a No-Contest Clause. A no-contest clause states that anyone who contests the will won't inherit anything. However, this isn't much of a hindrance for someone who is already getting nothing. Instead, write a clause that leaves a person something minor but sufficient to discourage them from contesting the will and risk getting absolutely nothing.
4. Avoid Probate. One of the best — and most enforceable — ways to disinherit someone is to transfer assets outside of the will. Why? Wills go through probate, where a judge can rule on their validity. So if you transfer assets through other means, which don't go through probate court, no one can contest. Use things like beneficiary designations, joint and payable-on-death accounts, and trusts to avoid oversight.
5. Leave Them Something. Finally, reconsider whether you really should leave a person nothing. It may be satisfying on a personal level, but it can create more problems than it's worth. Instead, perhaps you can leave them something not personally valuable to you or not of significant value. For instance, a beneficiary of a small life insurance policy walks away less disgruntled but doesn't receive part of your main estate.
Where to Start
One key to successful disinheritance is to work with a qualified estate planning attorney when designing your will and other documents. For more info, contact a local estate planning attorney.
