Completely disinheriting a child or grandchild should be reserved for extreme circumstances. And, if those circumstances exist in your family, it’s critical to ensure that you’ve taken the proper planning steps so that you are not leaving your loved one’s with a guaranteed lawsuit or other conflict after you are gone.
First, let’s get clear when it is a good idea to disinherit a child or grandchild, and when it is not. Disinheriting a child or grandchild simply because you do not agree with their lifestyle choice is usually not helpful. I doubt it will change them, if that is your goal. Moreover, the Creator has given us all freedom to choose how to live life, whether those choices are good or bad, we should imitate the Creator and give others this freedom. I would allow His natural law of consequences to take effect. Nevertheless, this does not mean that we have to approve of the lifestyle choice.
If the lifestyle choice you disagree with is something like a drug, alcohol or gambling addiction, which could be exacerbated by an inheritance, consider creating a trust that would allow your assets to be used for treatment programs, and that may even incentivize treatment. I can help you draft appropriate provisions into your trust to address a scenario like this.
If you are considering disinheriting a child or grandchild because you are concerned that they may not make good use of their inheritance, or could even possibly lose the inheritance to a future spouse or divorce, we can support in preparing a special trust that would allow you to leave the inheritance to your child or grandchild and keep it protected from future spouses or divorces, ensuring the inheritance stays in your family, no matter what.
If you are considering disinheriting a child or grandchild because they have special needs issues and you want to ensure they qualify for governmental benefits, contact us because we can create workarounds to ensure that your inheritance can be used for their support and they can qualify for governmental benefits.
Finally, if you truly do want to disinherit a child or grandchild, be sure to do it very carefully so as not to create unnecessary family conflict. Do not attempt to do this on your own.
Be sure to document your capacity and that you are making the choice to disinherit based on your own free will, so that the disinherited family member cannot challenge the disinheritance claiming incapacity or duress.
After you’ve made these difficult decisions, make sure you review your estate plan every 1-3 years to ensure your wishes still align with your legal documents. Families are dynamic, so you should refresh your estate plan at regular intervals or after significant changes in your family take place, such as births, deaths, or marriages.
This article is a service of Tom L. Culpepper, a Personal Family Lawyer®. I don’t just draft documents, I ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why I offer a Family Wealth Planning Session™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. Begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.