In estate planning, ensuring a smooth transfer of assets and properties to loved ones is crucial because the process can sometimes lead to disagreements among family members, particularly children, if not handled carefully. Kent Phelps, Attorney, CEO, and Trajan Estate Co-Founder, discusses how establishing a living trust in your estate plan can help minimize family conflict after your passing.

The Importance Of Clarity. Imagine a parent passing away without a clear estate plan. The parent had verbally promised certain assets to one child, while another child believed they were entitled to a different portion of the estate. Without clear instructions or legal documentation, this situation can lead to confusion, hurt feelings, and family discord.

A living trust can outline asset distribution wishes in a detailed, legally binding manner without going to court, specifying exactly how you want your assets divided. This reduces the likelihood of misunderstandings or disagreements and helps prevent family conflicts arising from differing interpretations of verbal promises or assumptions.

Ensuring Fairness And Equal Treatment. Let’s consider a family where one child has been more actively involved in caring for aging parents than their siblings. Without a clear estate plan, the caregiver may assume they’re entitled to a larger inheritance share as compensation. Meanwhile, the other siblings might feel resentful or unjustly treated if they perceive the division of assets as unequal.

By establishing a living trust, you can address these concerns and ensure fairness in asset distribution privately, outside of the court system. You can specify how you want your assets divided among your children based on financial needs or contributions to your care, which can help prevent conflicts stemming from perceived inequities.

Protecting Family Relationships. Family dynamics can become strained when financial interests come into play after a loved one’s passing. Suppose a parent leaves a valuable family heirloom to one child without instructions, which causes resentment among siblings, straining relationships and tarnishing precious memories of the deceased.

Your living trust can help prevent disputes over sentimental or valuable possessions, ensuring children understand and respect your wishes.

Facilitating A Smooth Transition. When a parent passes away unexpectedly, their children may be left with the burden of sorting through a complex estate. Without a plan, disagreements may arise over managing or distributing these assets, requiring court involvement, and causing delays and additional stress.

A living trust streamlines the asset transfer process with detailed instructions on how your properties should be handled and distributed, which helps avoid disputes and makes estate administration and asset transition more effective.

Read the full article: https://trajanwealth.com/blog/minimizing-family-conflict-with-a-living-trust-estate-plan/

About Trajan Wealth
Trajan Wealth, LLC was founded in 2012 by CEO Jeff Junior. Before his 20+ years in the financial services profession, Jeff served in the United States Marine Corps. He continues to serve his clients and employees with the utmost service, respect, and attention to detail.

By using low-cost, diversified portfolios under its fiduciary standard and working closely with its investment advisors and estate attorneys within one office, the company provides long-term support for client's retirement needs and estate plans, including wealth accumulation and tax planning strategies. The firm has multiple locations in Arizona, Colorado, Florida, Georgia, Texas, and Utah.

Learn more or schedule a complimentary consultation at https://trajanwealth.com or 1-800-838-3079.

Disclaimer:
*Advisory services offered through Trajan® Wealth L.L.C., an SEC registered investment advisor. Legal services are offered through ​Trajan® Estate, L.L.C. ​in Arizona and Utah, and independent law firms in other states.