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Where there's a will there's potential for acrimony

Like wedding fights, inheritance spats have a sordid, nightmare quality. A low-rent tussle over the loot can take a terrible toll on family ties.
By · 6 Nov 2013
By ·
6 Nov 2013
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Like wedding fights, inheritance spats have a sordid, nightmare quality. A low-rent tussle over the loot can take a terrible toll on family ties.

Hopefully, you and your siblings are above such antagonism. According to financial planner Michael Miller, the approach most Australians take to dividing the spoils is "surprisingly benign".

Still, Miller says, unexpected outcomes can spark resentment towards the deceased or anyone who receives an unanticipated benefit. Cue a rash of late-night emails that escalate tensions.

The root of conflict, Miller says, is poor preparation. Often, the terms of a will only surface when the author is gone. Worse, the will only specifies how the estate is distributed, not why, leaving the reasons to the survivors' imagination.

A letter explaining the will's rationale helps considerably, Miller says. An advance discussion in the vein of the rich, who have long held conferences about bequests, is better still, he says.

Just keep an eye on the paperwork, because poor filing can derail all your efforts towards a smooth resolution. Consider that the executor - the person appointed to manage the deceased's estate - is under pressure to file final tax returns and track down assets and arrange their sale or transfer: a hard ask.

"Most of us aren't very good at managing our own affairs, let alone those of a now-deceased friend or relative," Miller says. "Remember that the period after your death is one of grieving and sometimes high tension." If your executor is struggling to find income tax and capital gains tax records, this will increase the angst and fuel complications, Miller says.

Like Miller, wealth coach Luke Lucas says the secret of avoiding messy courtroom contests is meticulous homework anchored in clarity.

"Writing a will requires the same thing a healthy marriage does: communication. You should ensure that you are as descriptive and detailed as possible," Lucas says.

That means: explain why you are leaving more to one relative than another. Ensure that the will accurately accounts for all your assets, avoiding complacency, because bitter precedents abound, Lucas warns.

"They're common enough that an entire industry has been built up around them and ugly enough to destroy families.

"Just ask Gina Rinehart," Lucas says.

Craig Wilford, from Nexia Australia, has some dos and don'ts when it comes to avoiding inheritance feuds:

Do plan, plan, plan Family issues arise when your will contains surprises or ambiguities. Take the time to detail exactly what you want to happen to your assets, how you want them distributed and to whom.

Do choose your executor carefully The task of administering an estate is an increasingly complex process. The person you pick to manage the process must be able to apply the necessary time to follow your instructions properly and promptly.

Do share the details of your will with your family members If you are worried about encountering resentment, or even interference, ask your accountant or solicitor to do the honours. Openness will reduce the risk of disaffected beneficiaries challenging the estate, which is costly and time-consuming for all.

Do review your will every two years, taking into account changing circumstances If you make alterations, remember to leave copies of the revised version with your family.

Don't just hope for the best and leave your family to deal with the consequences Unfair to your family, a cavalier attitude creates an unwarranted level of stress. If your family has no idea what you intended, that opens the door to an unpleasant dispute.

Don't allot disproportionate amounts or assets without explanation If you give more to one family member than another, explain to all parties why, so everyone grasps your intentions.

Don't go it alone if feuding breaks out over the will Seek professional help to resolve the dispute, or raw emotion might trigger a trail of destruction.
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Frequently Asked Questions about this Article…

Inheritance disputes often arise due to poor preparation and lack of communication. When the terms of a will are only revealed after the author has passed, it can lead to unexpected outcomes and resentment among family members.

Inheritance disputes often arise due to poor preparation and lack of communication. When the terms of a will are only revealed after the author's passing, it can lead to unexpected outcomes and resentment among family members.

To prevent family conflicts, it's important to communicate clearly and plan meticulously. Discuss your intentions with family members in advance and provide a letter explaining the rationale behind your decisions in the will.

To prevent family conflicts, it's important to communicate your intentions clearly. Consider writing a letter explaining the rationale behind your will and discuss your plans with family members in advance to avoid surprises.

An executor is responsible for managing the deceased's estate, which includes filing final tax returns, tracking down assets, and arranging their sale or transfer. Choosing a capable executor is crucial for a smooth resolution.

An executor is responsible for managing the deceased's estate, which includes filing final tax returns, tracking down assets, and arranging their sale or transfer. Choosing a capable executor is crucial for a smooth resolution.

Ensure your will is clear and comprehensive by detailing exactly what you want to happen to your assets, how you want them distributed, and to whom. Regularly review and update your will to reflect any changes in circumstances.

To ensure your will is clear, be as descriptive and detailed as possible. Explain why you are leaving certain assets to specific individuals and make sure all your assets are accurately accounted for.

Explaining disproportionate bequests is important to avoid misunderstandings and resentment. By clearly communicating your reasons, you help ensure that all parties understand your intentions, reducing the risk of disputes.

If a dispute arises, seek professional help to resolve the issue. Engaging a solicitor or mediator can help manage emotions and prevent further family discord.

If a dispute arises over a will, it's advisable to seek professional help to resolve the issue. Professional guidance can help manage raw emotions and prevent further family discord.

It's advisable to review your will every two years, especially if there are changes in your circumstances. Ensure that any revisions are shared with your family to avoid confusion.

It's recommended to review your will every two years, taking into account any changing circumstances. If you make alterations, ensure that revised versions are shared with your family to maintain clarity.

Explaining disproportionate allocations helps family members understand your intentions and reduces the risk of resentment or legal challenges. Clear communication can prevent misunderstandings.

Discussing your will with family members in advance can reduce the risk of resentment and legal challenges. Openness and transparency help ensure that everyone is aware of your intentions, minimizing potential conflicts.

Common mistakes include not planning thoroughly, choosing an unsuitable executor, failing to communicate your intentions, and not updating your will regularly. Avoiding these can help prevent family disputes.