Second, it is important for clients to periodically review and update will and trust instruments to match their evolving preferences. Sometimes people make statements to family members about providing for them under their will or trust but never update the estate plan documents to reflect this intention. As you could imagine, loved ones become upset about this and, in some instances, will challenge the probate of a will or challenge the administration of a trust under the assumption that she is fighting to ensure a client’s intentions are fulfilled.
Third, when nominating an executor of his or her estate or a trustee of his or her trust, a client should consider selecting someone he or she thinks has the skill to manage the estate and trust and who is also a leader and likely to draw family members together. Sometimes, disputes involving trusts and estates stem from deep-seated resentment toward the fiduciary, which sometimes increases when the person steps into the fiduciary role to manage assets that others have an interest in. Even so, the law of most jurisdictions protects fiduciaries from claims asserted by hostile beneficiaries if the fiduciary carried out her duties in good faith, in the best interest of the beneficiaries, and in accordance with the law.
The importance of crafting an effective estate plan is critical in order to help ensure both family harmony following a client’s death and that his or her wishes are carried out. Having this plan in place is an excellent first step, but as time marches on it is vital that clients are cognizant of whether a plan needs updating to reflect the path and circumstances of his or her life.
Bryce Helfer is an attorney in Nixon Peabody’s Private Clients group. He counsels families on the strategic dispositions of their assets and also serves as a fiduciary, overseeing the management and administration of estate and trust plans.
Tarae Howell is a litigation attorney with Nixon Peabody who focuses his practice on resolving complex disputes for a variety of clients. He assists clients in disputes involving breach of contract, product liability, intellectual property, franchise, investment funds, private equity and trusts and estates.