Understanding Disinheritance Options and Strategies for Your Estate Plan

Disinheritance is not the most pleasant topic, but it can be important to discuss during estate planning. There are a variety of reasons to disinherit an individual, including the individual doesn’t need or want any assets, blended families, to avoid loss of income/asset restricted benefits or concerns about the ability to manage assets, or you simply do not want to give the individual an inheritance (which is covered in this post), to name a few. Each needs an in-depth analysis as the best way to accomplish your goals.

Disinheriting Someone Who Doesn’t Want or Need the Assets

If the situation involves an individual who doesn’t want or need the assets, the disinheritance can be simple but does involve planning. The planning discussion would focus on the reason for disinheritance, softening disinheritance language, advising on communicating to the individual regarding the plan, and ensuring the estate planning documents clearly state your wishes in a manner that will be legally binding. 

Disinheritance in Blended Family Situations

In the case of a blended family often the discussion will involve prenuptial and postnuptial agreements, how assets are owned (individually or jointly), marital trusts, right of occupancy trusts (i.e. to allow for a spouse to continue to live in a primary residence, but ensure the ownership passes to your children when the spouse passes away), and beneficiary designations. 

Protecting Benefits and Managing Concerns About Asset Management

There may be situations where an individual receives income/asset restricted benefits and you don’t want an inheritance to cause them to lose their benefits, or you have concerns about an individual’s ability to manage assets. For those situations, the conversation will be about special or supplemental needs trusts, lifetime trusts, trustees, management of the trust/assets, and other methods that can be used based on the needs/goals of all involved. 

Speak With an Estate Planning Attorney About Disinheritance

If any of these situations apply to you and you are interested in discussing potential options or other estate planning matters, please contact us for a consultation.