How to Squash Estate Squabbles

Want to find out how much your
family members really love each other? Just wait until a will is read.
While family squabbles over wills and trusts are legendary, you can
prevent them with careful estate planning.

To stop estate squabbles in the first place, don't write a
will
guaranteed to cause tension, says Glenn Kautt, CFP and president of The
Monitor Group, a financial and estate planning firm in
Fairfax, Va. "When we see a potential problem, we ask our clients if
they're aware that the plan will probably cause squabbles and suggest
ways to reduce potential tensions."

Suppose you designate your older, more responsible adult child
to
manage estate distributions for a younger adult sibling. "That's almost
guaranteed to cause resentment," Kautt says.

Remarriages can also cause problems. Suppose an older father
marries a
much younger woman. If he wants her to receive all estate income until
she dies, his children could wait until their 60s for their inheritance.

On the other hand, giving too much money to young adult
benefactors can
prove tragic. Financial planners suggest that you distribute portions
of your estate every few years until the benefactors are more mature.

If you have children who are minors, you may want to designate
a
loving, caring guardian for the children, then select a separate person
in a different home to manage the money. "Not only does it prevent
fiscal abuse," Kautt explains, "but it also ensures that two people are
considering the child's needs."

Kautt also recommends that you work with a certified financial
planner
(CFP) with plenty of estate-planning experience to draw up a plan; then
get an experienced estate attorney to write the documents. "A good
attorney can write them loosely enough to allow some discretion in
interpretation. If you don't want any discretion, the lawyer can write
it in tight, legal language."

Finally, Kautt suggests you appoint a family member and a
financial
adviser as co-trustees of the estate to avoid problems. "In our
experience, corporate trustees are inefficient and inattentive, so look
for a CFP or CPA."