Most people who engage in estate planning do so to ensure that their wealth will financially support their loved ones when the time comes. While it’s true that this is a major focus of the estate planning process, it certainly isn’t the only one. In fact, if relationships have soured with individuals that would inherit some of your assets without an estate plan in place, or if relationships have changed since the creation of your estate plan, then you may need to use the process to disinherit someone.
We know the thought of cutting someone out of your will can be stressful, and you may second-guess your decision. That’s why we want to look at some of the top reasons why people are disinherited and what you can do to effectuate disinheritance in as stress-free of a manner as possible.
Top reasons to disinherit someone
There are many reasons why you may want to disinherit someone. Here are some of the most common reasons that may be applicable in your situation:
- A divorce leaves you unwilling to leave assets to the individual who is no longer in your family.
- A breakdown in your relationship with someone renders them estranged from you.
- The individual in question has severe medical issues that renders them incapable of properly managing or enjoying the assets in question.
- The intended beneficiary’s financial positioning has solidified to the point that they no longer need an inheritance.
- You feel like you’ve already given the individual sufficient financial support through previous gifts.
- The individual has a problem with financial mismanagement that you feel can’t be addressed through estate planning options like a spendthrift trust.
If any of these circumstances apply to your situation, then you might be wondering how you can go about disinheriting someone. Let’s take a closer look.
Thinking about disinheriting someone can be stressful. But there are very clear steps that you can take to effectively disinherit someone while making the process easier. These include:
- Stating very clearly in your will that the individual is to receive no assets from your estate.
- Utilizing trusts that clearly transfer ownership so that your death will have no impact on asset ownership.
- Considering whether leaving your assets to charity is a better option.
- Communicating with family members your intentions so that everyone understands your justifications, and no one is taken by surprise when the time comes.
- Thinking about adding joint owners to assets so that ownership clearly transfers upon your death and is less likely to be subjected to a challenge.
Of course, there’s no one right way to approach disinheriting someone. Under your unique situation, for example, it may be best not to tell the individual that you’re disinheriting them. Just be sure to carefully analyze the facts of your case so that you can develop a plan that works for you. Avoid improvisation that could lead to misstatements and misunderstandings.
Take control of the estate planning process to suit your needs
There are multiple ways to address estate planning. If you feel like you want to disinherit someone, then you should carefully think through why you feel that way, whether your concerns can be addressed through other estate planning strategies and how disinheritance will impact the other individual and their family. By being thorough, you can rest assured that you’ve made a decision that’s right for you and your estate. If you want to learn more about how to approach your estate plan, then please consider discussing the circumstances with your estate planning attorney.
