Understanding Estate Litigation

Litigation is the process by which parties seek the intervention of a court or other authority to resolve a disagreement they cannot decide on their own.

While the phrase might refer to alternative conflict resolution processes like mediation or arbitration, estate disputes almost usually end up in court.

Whether you are a beneficiary, personal representative, or another interested party, an estate litigation attorney can help you understand your choices and resolve your issue.

Common disagreements that result in estate litigation:

  • Disputes over the legitimacy of the will or trust.
  • Claims that the personal representative or trustee violated their fiduciary duty
  • Disputes over creditors’ claims against the estate.
  • Claims of fraud or undue influence
  • Guardianship concerns.

As previously stated, estate litigation happens when disagreements develop, and the parties cannot settle them. They may be unable to resolve them for various reasons, including personal issues, which are prevalent in estate disputes.

The estate documentation may be vague or inconsistent. An heir could have been suddenly disinherited or mistreated.

Whatever the cause, litigation may be the best way to resolve the conflict. An estate litigation attorney will help you analyze your case and explain the possibilities.

What happens if you can’t resolve a dispute?

If your issue involves a will, you must go through the probate process. The process consists of filing the will and then administering it under the supervision of the probate court.

Because you are already in court, you do not need to file a separate lawsuit, even if the matter might be handled separately. This helps to simplify the lawsuit procedure.

When a trust is involved, the procedure becomes more challenging. Trusts are administered independently of the probate process and without the oversight of a court.

As a result, if you want to attack a specific component of the trust or how it is run, you must launch a separate action.

Is there litigation if there is no will or trust?

If the decedent died without a will or trust, you must still go through probate. The first stage will be to designate a personal representative, which can lead to conflict.

Once the personal representative is selected, intestate succession statutes will disperse the estate’s assets.

As a result, disagreements over who obtains estate assets are highly unusual; nonetheless, litigation might still emerge over many other components of the procedure, such as the following:

  • Whether the personal representative is appropriately carrying out their obligations.
  • If there is proper notification to all heirs and creditors.
  • Identification and valuation of estate assets.
  • The handling of creditor claims

As a result, if there is any dispute, it will most likely occur during the probate process.

Is settlement an option when you opt for litigation?

Yes, you can settle your case. The chance of settlement, however, will be determined by a range of variables. For example, the personal representative or trustee may be unable to approve a settlement if it violates the conditions of the will or trust.

The reality is that resolution in an estate lawsuit might be more complex than in other disputes due to the number of parties involved and the limits of estate planning instruments.

This is one of the reasons you should consult with an estate litigation attorney early in the process; they will help you determine whether settlement is a viable option or if litigation is the only way to resolve the disagreement.

How to navigate estate litigation

Defend the will

You should defend the will if you believe it is just and legal. Estate litigation can take several months or longer. Therefore, it is best to hire an experienced lawyer as early in the process as feasible. The Wills, Estates, and Succession Act (WESA) establishes the requirements for a valid will, which include:

To form a will, you must be at least 19 years old, mentally competent in writing it, and sign it with two or more witnesses.

These requirements should be addressed first when determining the validity of a will, as it may be declared void owing to other conditions.

If a will does not follow the statutory formalities or was prepared while the will-maker was incapacitated or under undue influence, it may damage your entitlements.

Know the wishes of your loved one.

Engage in end-of-life conversations with your loved ones throughout their lives. Accidents and abrupt diseases can occur at any time.

Know where your loved one’s will, trust, and other estate documents are stored. Ensure that he or she engages an expert estate lawyer to write the estate plan and that the plan is updated correctly after significant events, such as a spouse’s death, the sale of a business, or the birth of a child.

Understand the timeframes

There are several time constraints for filing estate-related court actions. Depending on your claim, it could be as little as 180 days after probate is granted.

If you are concerned that a will is invalid or that you have been disinherited, you should contact a lawyer straight away, as courts seldom, if ever, allow for actions filed outside of the appropriate time frame.

If you wait too long, you risk losing your entitlement.

Don’t sign as a witness.

If you or your spouse are being gifted something in a will, you should not sign as a witness. The best approach is for the will-maker to have independent witnesses present to corroborate their signature. If you witness a will in which you also inherit, your gift may be void.

If you need assistance in preparing your estate plan or have questions regarding challenging or defending the validity of a will, contact a reputable wills and trust attorney Upper Marlboro and have them help you.

As a rule of thumb, ensure that the professional you hire is experienced and knows what they are doing. You don’t want someone who causes more chaos than is already there.

Tricks to Fast Track Probate Proceedings

Probate proceedings for some estates might last several months or even years. Unfortunately, you don’t want this, do you?

You want the inheritance to be passed on to the beneficiaries as soon as possible. If you are a beneficiary, you do not want to be stuck in a scenario where you cannot get the assets. While this process is often slow, there are several things you can do to speed it up.

These things include:

Work with an experienced wills and probate attorney

Hiring a qualified probate lawyer can be the difference between a simple and swift probate process and one fraught with frustration and delays.

Work with an attorney who will speed up the process and help you obtain probate within a few weeks. An experienced attorney will direct you in the right direction, and help you make the right decisions.

Many people make the mistake of wanting to save money by doing everything by themselves. This is wrong.

The right thing to do is to work with an experienced professional who will point you in the right direction and help you save time and headaches.

Find out the debtors and creditors as soon as possible

If you are the executor of an estate, one of your responsibilities is to swiftly identify the deceased’s creditors and debts. The most obvious bills and expenses that you, as the Executor, must pay before distributing the legacy to the recipients are IRAs and credit card companies.

Once you acquire probate, you should pay them as soon as possible.

Take charge

If you are the executor or administrator of the estate, only you should interact with your probate counsel. Do not let family members or beneficiaries dictate to the probate lawyer what to do.

Remember that probate lawyers can only accept directions from the executor or administrator. If other family members insist on having a say, your probate lawyer has the right to discharge himself, especially if there are contradicting instructions and competing demands.

If you are not in command and allow everyone else to have their opinion, there will undoubtedly be a delay that you are trying to avoid.

File estate tax as early as possible

If the Internal Revenue Service Form 706 must be completed, the IRS will normally take at least six months to complete their evaluation, which does not include any time required to fix errors on the form.

You can close probate sooner if the personal representative gathers the information needed to complete Form 706 early in the probate procedure. The personal representative must verify that Form 706 is accurately completed and sent to the IRS.

Even if an estate is not obliged to submit the Form, it may need to file a state estate tax or inheritance tax return.

To avoid delays, you should file as soon as possible. If you are confused about how to go about it, get the input of your attorney or any other professional.

Pay attention to the unusual assets.

Certain types of difficult-to-value property may cause probate to be delayed. These assets may include:

  • Collectables
  • Complicated property or business rights.
  • Patents and other intellectual property
  • Extremely illiquid property

In such a scenario, you need to keep your attorney close to you to ensure that these assets do not prolong the probate process. The attorney will analyze the assets and determine how they will be dispersed or disposed of.

Separate the estate money.

As the Executor or Administrator, you must separate the estate funds from your funds. The right way to do it is to open a separate bank account and avoid combining estate and personal funds.

Remember that the beneficiaries are entitled to a thorough record of the executor’s activities. Having a separate estate account and accounting for estate funds will help the probate process move more quickly.

This is because you won’t need to explain many things. The beneficiaries will also have a better understanding of what is going on, and as a result, they won’t need to raise many issues.

Prepare your schedule of assets.

The Schedule of Assets is one of the most important documents you must fill in the Family Justice Court before the grant of probate or letter of administration is issued.

To save time, determine the deceased’s assets and assign a value to them. As part of the administration process, you should file the Schedule of Assets with the probate court.

If you are the estate’s executor or administrator, your probate lawyer will need a list of assets and a valuation of personal effects, real estate, or other assets.

You should provide your probate lawyer with copies of bank statements, title deeds, and insurance policies.

By doing this, you will fasten the process and have an easy time going through the process.

Get a court permission if necessary.

If probate beneficiaries do not get along or speak to one other, work with your probate attorney Largo and seek court authorization to proceed with the probate process.

By presenting files to the court as soon as possible and attending court as necessary, you increase the chances of completing the process on schedule.

The last thing you want is to bring together the beneficiaries so that they can agree on the contentious issues. When you do this, there is a chance that the process will take too long, and the beneficiaries might even disagree, dragging the process for years.

Parting shot

These are some tricks you can use to speed up the probate process. As mentioned, always work with an experienced attorney who knows what they are doing.

You should also research and find the necessary documents so that you can obtain them as soon as possible. It will even be better if you can get them before you start the process.

In some cases, you will find the beneficiaries don’t agree on some contentious issues. To speed up the process,don’t try to make them agree or make peace. Instead, get a court order to proceed with the probate process.

Reasons You Should Have a Good Estate Plan

Estate planning can help you avoid many terrible scenarios, and while it may require some time and money upfront, it can save you from many serious problems later on.

For example, if you do not offer a clear estate plan, the state will do what it believes is best with your estate, which is unlikely to be what you would choose. Do not leave your estate to the state.

Working with your estate planning lawyer and having an estate plan comes with plenty of perks. These perks include:

You minimize family squabbles

Your family may get along well most of the time, but it’s still a good idea to prepare a will to ensure this continues. The prospect of a monetary grab may agitate some relatives, while others may conceal a personal gem that they hope goes unnoticed.

Regardless of your wealth, careful estate planning can save your family from bickering, whether it’s a minor disagreement or a full-fledged lawsuit.

You clarify your directives

You may have always planned for your niece to inherit that heirloom, but unless it is explicitly stated in the estate, anyone can take it.

An estate plan guarantees that your assets go to the person you wish to receive them. By carefully stating your preferences, typically with the assistance of a lawyer, you can ensure that your loved ones remember you fondly and receive what you meant.

You minimize taxes

If you plan ahead, you can reduce the amount of your estate that goes to Uncle Sam while increasing the amount that goes to your relatives.

Cleverly structuring flexible retirement accounts, such as a Roth IRA, can assist in transmitting more tax-free money to your heirs, while other tax-planning methods, such as strategic charitable giving, can help you reduce your tax burden.

You should work closely with your attorney and find strategic ways to go about it.

You avoid a probate court

Set up your estate correctly, with a well-crafted trust, and you’ll breeze through probate court, which is perhaps the most tedious and time-consuming part of the entire process.

Work closely with your attorney and establish a plan that will save you a lot of time and money in the long run.

You protect your heirs

A proper estate plan can also help safeguard your heirs. If your children are minors, your estate plan can specify who will care for them and how they will get money.

It can also shield heirs from repercussions if a relative accuses them of theft. A living will can also assist heirs avoid some of the tough health decisions that arise at the end of a parent’s life.

You keep your family assets together

Estate planning is an effective strategy to keep your money in the family. A trust, when properly structured, can prevent a squandering nephew from wiping out your entire life’s savings in a matter of years. It can also help keep money inside the family if an ex-spouse attempts to take some of it.

Types of estate planning

Estate planning comes in different forms, ranging from simple beneficiary designations when you create a bank or brokerage account to more intricate and extensive arrangements. The following are some of the most common types of estate planning:

A will

At death, a will specifies where the assets you possess individually that do not have a designated beneficiary should go. Property owned jointly, such as with a spouse, flows immediately to the remaining owner(s).

The court will designate an executor to carry out the will and oversee the division of assets when the time comes.

Wills that go into effect are scrutinized in probate court, a public proceeding that allows possible creditors to file a claim against the estate. Only after the estate has been settled with creditors will the residual assets be allocated to the heirs in line with the will.

Beneficially designations

Whenever you open a financial account, such as a bank, brokerage, or insurance account, you will be asked to designate a beneficiary.

When you die, the beneficiary will be the first to collect any funds from the account. If you wish, you can distribute your assets among numerous beneficiaries and designate contingent beneficiaries in the event that the principal beneficiaries die.

Naming a beneficiary is critical: Your beneficiary selection normally takes precedence over any other declarations in your inheritance.

If you die without a will, accounts with stated beneficiaries may still pass directly to your heirs.

Trusts

Trusts come in many different forms, and while they may appear complicated, they are actually quite simple at their foundation. A trust is a legal structure that enables a third party, to hold assets on behalf of a beneficiary.

Trusts provide you with a variety of estate-planning alternatives, the most notable of which is the potential to avoid probate court while keeping a high level of anonymity.

Trusts provide you control over how your assets are distributed after your death, not simply who receives the money but also under what conditions.

This control can be useful when allocating assets to people who lack the competence or maturity to manage money. You can also specify whose trustee(s) you want to oversee and direct the trust after your death.

While trusts can be complex, one of the simplest and most straightforward is the revocable trust. Such a trust guides your assets through probate and directs them according to your preferences.

You can even serve as a trustee and make decisions during your lifetime.

More complex trusts with multiple requirements may necessitate the assistance of a qualified wills and trust attorney Upper Marlboro. Of course, trusts can also be used to avoid some taxes, which is one of the reasons for their perennial popularity.

Parting shot

As you have seen, there are plenty of benefits that come with having a good estate plan. You not only ensure that your property goes to the rightful heirs but also protect them from wasting time in court.

To have an easy time coming up with an estate plan, work with expert attorneys who will hold your hand.