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Once you have been appointed the executor or personal representative of a deceased loved one’s probate estate, or when you step in as the successor trustee of the loved one’s trust, one of the first things you should do is to notify the post office of the death and ask them to forward the deceased person’s mail to your address. You will be required to provide documented proof that you have been authorized to manage your loved one’s mail—a death certificate is not enough. You will then need to complete a change-of-address request. According to the United States Postal Service website, you must do this in person.

It is important that you direct your loved one’s mail to your mailing address for a period of time because, as the executor, personal representative, or successor trustee, you are responsible for winding up your deceased loved one’s affairs. Your duties specifically include ensuring that necessary bills are paid and creating a list of everything your loved one owns to make sure it is passed on to the intended recipient. Unfortunately, along with important pieces of mail such as statements, bills, and refunds, many not-so-important pieces—catalogs, solicitations, and junk mail—will end up in your mailbox.

Conversely, you may have purchased a deceased person’s home from their estate or trust and be receiving their mail at your new address. If you receive mail that is addressed to someone other than you, you want to ensure that the correct person gets the mail. 

How can you stop the post office from delivering mail addressed to a deceased person? Follow these four steps:

1. If you are the executor or personal representative of an estate that has been administered through the probate court and the estate is officially closed, hand-deliver or send a copy of the probate order closing the estate and dismissing you as the executor to the deceased person’s local post office with a request that all mail service be stopped immediately. If you do not take this step and mail continues to trickle in two or more years after the death, the post office may honor forwarding orders for only one year. 

2. To stop mail received as the result of commercial marketing lists (junk mail), log on to the Deceased Do Not Contact Registration page (ims-dm.com/cgi/ddnc.php) of the DMAchoice.org website and enter the deceased person’s information. There is a $1 authentication fee to register for the list. After registering the deceased person on the website, the organization claims that the amount of mail received due to commercial marketing lists should decrease within three months. The deceased person’s friend, relative, or caregiver can register.

3. For magazines, other subscriptions, and mail that are technically not junk mail (for example, solicitations from charities to which the deceased person made donations while they were living), contact the organization directly to inform them of the death. Note that some publishers may issue a refund for unused subscriptions.

4. If you shared the mailing address with the deceased person or are the new owner of the deceased person’s home, write “Deceased, Return to Sender” on any mail addressed to the deceased person and leave it in your mailbox for pickup.

Remember, it is a federal offense to open and read someone else’s mail, so if you are not the legal representative of the deceased person, do not open their mail! If you are ever in doubt, call or visit your local post office for additional instructions.

We know that losing a loved one is difficult. Not only are you grieving your loss, but if you are the executor, personal representative, or successor trustee, you also have work to do. If you need assistance winding up your loved one’s affairs, please call us.

Michael Jackson passed away in 2009, but the settling of his estate continues more than 15 years after his death due to a lingering tax dispute with the Internal Revenue Service (IRS) and other legal challenges, including a lawsuit brought by his mother over a deal to sell part of his music rights to Sony Music Group for $600 million. 

A Los Angeles appeals court issued a ruling in August 2024 allowing the deal to proceed over the objections of Katherine Jackson, who argued that the transaction with Sony violates the terms of Michael’s will and runs counter to his wishes. The sale will now move forward, providing money for his heirs—and valuable estate planning lessons about trusts and controlling money and property from the grave. 

Background on Music Sale Legal Dispute

According to the terms of Michael Jackson’s will, his entire estate is to be turned over to the Michael Jackson Family Trust. The primary beneficiaries of the trust are his three children and unnamed charities. John Branca, an attorney, and John McClain, an accountant, are the trustees of the trust and the executors of Jackson’s estate. Trustees and executors have similar roles—the winding down of a decedent’s affairs—but in different contexts. A trustee manages accounts and property owned by a trust. An executor (called a personal representative in some states) is responsible for managing a deceased person’s probate estate (which consists of accounts and property in the deceased person’s sole name that did not have a beneficiary at the time of their death) through the probate administration process.

Katherine, Jackson’s mother, is a life beneficiary of a portion of a subtrust, the terms of which give the trustees sole discretion to manage the trust assets (accounts and property owned by the trust) for Katherine’s “care, support, maintenance, and well-being.” When Katherine dies, any remaining assets in her subtrust pass to the children’s share of the trust. 

Jackson’s will was admitted to probate in 2009, but his estate remains frozen due to a long-running tax issue involving $700 million allegedly owed to the IRS. 

A May 2024 court filing shows that, as long as the legal dispute continues, the family trust cannot be funded. In the meantime, however, the family is receiving payments through an allowance provided by the estate and its executors.

In 2010, the probate court authorized the executors to continue running Jackson’s businesses. Because the estate is still pending before the court, the executors had to seek court approval to move ahead with a deal between the Jackson estate and Sony Music to purchase half of the King of Pop’s publishing and recorded masters catalog (called the Mijac catalog). 

When they brought the deal to the judge, Katherine filed objections. Jackson’s children initially sided with their grandmother in opposing the transaction, but after the probate judge ruled last year that the deal could proceed, they accepted the decision. 

Katherine subsequently filed an appeal. The appeal spawned a separate lawsuit between Katherine and Jackson’s son, Bigi, who argues that it is “unfair” that the estate should have to fund her lawsuit against the executors when the Jackson children already decided an appeal was not in their best interests. 

In a court filing, Bigi’s lawyers wrote that participating in an appeal was a waste of resources because the chances of a reversal would be “an extreme longshot.” 

It turns out the lawyers were right. The appeals court sided with the probate court and ruled that the estate can proceed with the sale to Sony, denying Katherine’s attempt to block the agreement. 

Sony will now have a stake in what Billboard says could be the largest valuation of music assets ever—an estimated $1.2–$1.5 billion. 

Appeals Court Ruling

Katherine argued in her appeal that the music rights sale violated the terms of Jackson’s will and established probate law. 

She said Jackson told family members before his death that the assets should never be sold. She also claimed that her son intended to give the “entire estate” to the trust. According to Katherine, his music catalog—not proceeds from selling his music catalog, or partial management rights over that catalog—should pass to the trust. 

In rejecting her arguments, the appeals court determined that Jackson’s will gives the executors “broad powers to buy and sell estate assets in the estate’s best interests” and that “all of the estate’s assets will be distributed to the trust.” 

Katherine argued that these provisions are inconsistent and that the probate court’s order violates the second provision because it allows estate assets to be transferred to a joint venture (i.e., Sony) instead of to the trust. The appeals court disagreed, opining:  

We conclude that the provisions are not inconsistent: Read together, they give the executors broad powers to manage estate property while the estate remains in probate, and they provide for the transfer of all estate property to the trust when the probate action is concluded. . . . The proposed transaction is consistent with the terms of Michael’s will as so interpreted, and thus the probate court did not abuse its discretion by granting the executors’ petition. 

Katherine could still appeal the ruling to the California Supreme Court, but based on the interpretation of the lower court, her chances of a successful overturn are low. 

Planning Lessons from the Estate of Michael Jackson 

“Michael died testate on June 25, 2009,” the appeals court notes in its background to the case. 

Testate means that Michael died with a will. He therefore avoided dying intestate, or without a will—something that has plagued the estates of musical superstars like Prince, Tupac Shakur, and Marvin Gaye. 

Dying intestate can lead to protracted estate litigation between heirs and other interested parties, especially when the estate belongs to a celebrity worth many millions of dollars. We see this with Prince’s estate, which is still being litigated more than eight years after his passing. 

A formal written will takes precedence over oral statements made to friends and family members. It could be the case that Jackson communicated to his mother, as she claims, that the music catalog should never be sold. But goals and wishes casually discussed with friends and family are not legally enforceable unless they have been put in a valid, legally enforceable document. 

Jackson not only left behind a valid will but also created a revocable trust during his lifetime to benefit his children and mother. He additionally had the foresight to place terms on the trust to ensure that his children would be mature enough to receive their large inheritances, stipulating specific disbursements to them at ages 30, 35, and 40. 

Jackson also avoided another mistake in his estate plan by giving broad powers to the executors. Estate planning attorneys typically advise clients to give executors broad powers to buy and sell estate property during probate so they do not have to spend time and money seeking court approval for routine transactions.

Jackson’s will is crystal clear on this point. Article V of his will provides: “I hereby give to my Executors, full power and authority at any time or times to sell, lease, mortgage, pledge, exchange or otherwise dispose of the property, whether real or personal, comprising my estate, upon such terms as my Executors shall deem best . . . .”

This type of provision lets executors sell assets in response to changing circumstances that the original owner might not have been able to predict when they created their estate plan. For example, Jackson’s estate filed a brief with the appellate court claiming they negotiated the Sony deal to take advantage of an asset market that was “by far the hottest it had ever been.” 

On the surface, it looks as though Michael made all the right estate planning moves: He created a will and a trust and gave his executors the authority to maximize his estate’s assets for the benefit of his heirs. But he made one potential mistake: Not all of his assets were transferred into the trust during his lifetime, in a process known as trust funding. Trust funding is crucial to ensure that all of a person’s assets are administered privately under the terms of the trust rather than in the public eye of a probate court.

Michael had what is known as a pour-over will that was intended to transfer all assets not already controlled by the trust into the trust upon his death. Pour-over wills serve as a safety net; they transfer all probate assets into the trust so they can be administered with the other trust assets pursuant to the terms of the trust. 

But leaving assets out of the trust and using a pour-over will to direct them to the trust after his death meant that the assets had to go through probate, opening the estate up to some of its current predicaments, such as the lawsuit his mother filed challenging the executors. 

Create an Estate Plan That Matches Your Legacy Goals

Most people do not have to deal with the complex estate planning considerations that celebrities face, particularly a celebrity on the scale of Michael Jackson, whose musical legacy continues to generate huge profits. Jackson was the top-earning dead celebrity in 2023, a credit to his executors’ successful management of his estate. 

Choosing the right executor and granting executor powers are key aspects of an estate plan that are often overlooked. When making your plan, you are under no obligation to name a friend or family member as executor. You can do what Jackson did and choose professionals with legal and financial expertise. 

His choice of a revocable trust and a pour-over will may be questioned postmortem, but there were probably reasons why he chose this type of arrangement. Failing to fully fund his trust, however, may have been an oversight that could have been prevented with the help of an experienced estate planning attorney.  Estate planning choices involve pros and cons, costs and benefits, that need to be evaluated on an individual basis. What makes sense for Michael Jackson and his heirs—or any other family—might not make sense for you and your loved ones. 

To put your finances and family in the best situation, you need a customized estate plan that is based on your specific wishes for your money and property, and you should revisit your plan every few years to ensure that it reflects current circumstances. 

Call or contact our attorneys for help crafting a plan that meets your legacy goals.

“No, I am your father.” 

These words, uttered by James Earl Jones in his voice-over role as Darth Vader, are indelible in the minds of Star Wars fans. Jones is also well known for voicing Mufasa in The Lion King and a series of cable news promotions in which he declared, “This is CNN.” 

But Jones’s booming basso profundo is just one part of his legacy. The famed actor, who passed away in September at age 93, had a decades-long career in film, television, and theater that earned him a place among the greatest performers of our time. His legacy also includes a collection of properties in upstate New York, a net worth in the tens of millions of dollars, and a deal ensuring that future generations of moviegoers will enjoy his iconic voice. 

From Silent Stutterer to Silver Screen Star

Jones is best remembered for his voice, but as a child, he did not speak for years after he and his family moved from Mississippi to Michigan when he was five years old; the trauma of relocating caused him to develop a stutter. 

“I was mute from grade one through freshman year in high school . . . I just gave up on talking,” Jones said in a 1986 interview.” 

A high school teacher helped Jones find his voice again by encouraging him to read his poetry aloud, sparking a passion for oration and performance that took him from the small stages of northern Michigan to the silver screens of Hollywood. 

Jones won a public speaking contest as a high school senior and received a full scholarship to the University of Michigan, where he studied drama. He then served in the US Army during the Korean War before moving to New York and landing lead roles in Shakespearean stage productions. 

In the mid-1960s, he made his film debut in Stanley Kubrick’s Dr. Strangelove and scored roles on TV’s Guiding Light and As the World Turns. But it was his 1969 portrayal of boxer Jack Jefferson in The Great White Hope—both on Broadway and in the 1970 film—that brought Jones major recognition, earning him a Tony Award and an Oscar nomination.

Jones was the second African American man nominated for an Academy Award. He eventually won an Oscar in 2011 when he received an Academy Honorary Award, making him one of the few entertainers to achieve the EGOT (Emmy, Grammy, Oscar, and Tony).

He never won an award for his voice role as Darth Vader in the Star Wars franchise, but it was this 1977 performance that gained him international fame and immortalized his voice in popular culture. 

Jones chose to take a lump-sum payment of $7,000 (the equivalent of around $36,000 today)—instead of a share of profits—to voice the villainous Vader and, at the time, considered it good money. However, choosing the lump sum over a profit-share option reportedly cost him and his family millions in payouts. 

Explaining his thought process years later, Jones said that as a starving young actor, he never expected Star Wars to achieve its cult status and become a multibillion-dollar franchise: “Seven thousand dollars was big money for me in those days. I was broke and needed the money to pay rent and buy groceries.”

Jones retired from his Darth Vader role in 2019. Prior to his passing, however, he teamed up with a Ukrainian AI company to recreate his voice and gave Lucasfilm permission to use it in future productions. His AI-generated Darth Vader voice can be heard in Disney’s 2022 Obi Wan Kenobi series. According to IMDb, it was his final credit. 

With the deal, the voice we almost never heard is now assured to live forever. And while Jones’s legacy is inseparable from what he did behind the microphone, what he achieved on-screen is equally memorable. His nearly 200 film and television credits include Roots, Conan the Barbarian, Coming to America, Field of Dreams, The Hunt for Red October, Patriot Games, The Simpsons, and Cry, the Beloved Country. 

Personal Life, Properties, and Probable Sole Heir

Jones died on September 9, 2024, surrounded by family at his home in Pawling, New York, located in Dutchess County. He had an estimated net worth of $40 million at the time of his death. 

Jones fell in love with Dutchess County during a road trip there in 1970 with a friend who was interested in property for sale. His friend passed on buying the property, but Jones ended up securing the land for himself. Far from the bright lights of Hollywood, Jones lived the rest of his life in Pawling, where he was active in the local community and he and his wife raised their son, Flynn. 

He liked it so much, in fact, that he bought 10 neighboring properties over the years and laid down roots of his own. Jones had a particularly close relationship with Poughkeepsie Day School, which Flynn attended from 1994 to 2001. In 2000, the school named its auditorium the James Earl Jones Theater in his honor. 

Flynn was born in 1982 to Jones and his second wife, Cecilia Hart, shortly after the couple wed. Hart, also an actor, died of ovarian cancer in 2016. 

Flynn Earl Jones was close to his father and, though not an actor himself, followed in his footsteps by working as an audiobook narrator. He also married an actress, Lorena Monagas. The couple wed in 2019 in Tarrytown, New York, an hour south of Pawling. Flynn has 17 voiceover credits on Audible.com but prefers a life out of the spotlight and has no social media profiles. 

As James’s only child, Flynn could be the sole inheritor of his late father’s estate, although there are few public details about the estate plan. 

An obituary from the Horn & Thomes, Inc. Funeral Home in Pawling notes that Jones leaves behind “a loving family including his son Flynn Earl Jones, daughter-in law Lorena Monagas Jones, his brother Matthew Earl Jones, his Aunt Helen Irene Georgia Connolly Morgan and many, many others.”

Matthew Earl Jones is James’s half-brother. They have different mothers and the same father. It is uncertain whether he or other family members will share an inheritance with Flynn. 

It is also possible that Jones included charitable giving in his estate plan, given his community-mindedness. Those who knew him in Dutchess County praised his generous spirit. He supported several charities, such as the Make-A-Wish Foundation and Habitat for Humanity. His obituary states that, in lieu of flowers, donations in his honor can be made to Hudson Valley Hospice, providing another hint that Jones might have left part of his estate to charity. 

For a man of his accomplishments and fame, Jones managed to stay largely out of the public eye. He even requested that his name not appear in the credits of the first two Star Wars movies in deference to the actor in the Darth Vader costume. 

In the few interviews he did give, Jones often reflected on his preference for a quieter life. It would not be surprising if he maintained this privacy in death by using trusts to transfer assets to beneficiaries. A trust agreement stays private, unlike a will, which is a public record once filed with the probate court. 

Estate Planning Is Not Just for Celebrities

Celebrity estate plans often make headlines only when something goes wrong and causes family drama. Actors Philip Seymour Hoffman and Heath Ledger, for example, both failed to update their estate plans to include a new child who had been born prior to their passing. Other famous actors, such as Bob Saget, Norm McDonald, and Gilbert Gottfried, died without a will, leading to protracted legal disputes in each case. 

Arguably, the biggest mistake that Jones made was forgoing the profit-share option when he signed on to voice Vader. He admitted in 2010 that this decision cost him “tens of millions of dollars.” But Jones can be forgiven for this youthful indiscretion. Almost nobody—not even George Lucas—expected Star Wars to make much money. 

We all make mistakes when we are starting our careers and beginning to build our legacies. How we finish is more important. Given what we know about Jones, it seems highly unlikely that he would neglect the people and causes he cared about through a lack of estate planning. 

If he were still alive today and asked about his estate plan, he might respond, to quote Darth Vader in Star Wars: Episode IV – A New Hope: “I find your lack of faith disturbing.” Call us to schedule a consultation.

According to a Centers for Disease Control and Prevention survey, there were more than 670,000 divorces¹ and more than 2 million marriages in 2022. Divorce is a common life event that many Americans face during their lifetime. Some states have laws that automatically end an ex-spouse’s appointment as decision-maker in their spouse’s estate plan with the ending of their marriage, as well as their right to any inheritance to which they may have been entitled. However, what happens if you die after you file for divorce but before it becomes final? 

Shannen Doherty faced this same question. In her case, the divorce was deemed to be finalized before her death.

Life and Career

Born April 12, 1971, in Memphis, Tennessee, Shannen Doherty is most known for her iconic roles as Jenny Wilder in Little House on the Prairie; Brenda Walsh in Beverly Hills, 90210; and Prue Halliwell in Charmed. After battling stage IV cancer for more than four years, she passed away on July 13, 2024. Surviving her are her mother, with whom she was very close, and her brother, Sean.

Divorce from Kurt Iswarienko

While Doherty was battling cancer, she was also in the midst of a divorce from her third husband, Kurt Iswarienko. The divorce proceedings took more than 15 months to conclude, with Doherty filing for an uncontested divorce and signing the necessary paperwork the day before she died. Iswarienko signed the documents on July 13, 2024.² A family law judge signed off on the divorce two days after Doherty passed away.³

According to a stipulated agreement with Iswarienko, Doherty’s estate was able to retain the couple’s home in Malibu, California; a Salvador Dali painting; several cars; and all earnings from her acting.⁴ In addition, as part of the divorce proceedings, she had filed an income and expense declaration stating that she had $251,000 in the bank; another $1,880,000 in stocks and bonds; and insurance money from a lawsuit over damage done to her California home. ⁵She also stated that she had real property worth $3 million and $134,000 in a pension fund.⁶

Doherty’s Plans

In an interview with E! News, Doherty discussed how she had started to sell some of her valuables and, with that money, was able to take trips with her loved ones to create memories.⁷ She also acknowledged that, in selling property and other items, her priority was to make things as easy as possible for her mom.⁸

What Might Have Happened?

With both parties finalizing the divorce and signing their respective waivers, Doherty was able to control what would happen to her money and property at her death. Had she passed away before the divorce was recognized as final, things could have looked much different. Because a marriage is a legal relationship while you are alive, the passing of one spouse ends the marriage, leaving the other party as the surviving spouse. 

If She Had a Will, Trust, or Beneficiary Designations

Although she and Iswarienko were in the middle of divorce proceedings, Doherty could probably not change the provisions in her estate plan that dictated who would receive her money and property until the divorce became final. Therefore, any money or property that she would have left her soon-to-be former spouse under a will, trust, or beneficiary designation would probably still go to him. If he was not included in her will or trust, he may have been able to file a claim against her estate for his elective share (a statutory minimum that a surviving spouse receives).

If She Did Not Have a Will or Trust

Had there been no will or trust, California’s intestacy statute (the state’s plan for what happens to a person’s money and property if they die without a will or trust) would have dictated what Iswarienko was entitled to. According to the statute, his inheritance would have been

• her half of their community property,
• her half of their quasi-community property, and
• half her separate property.⁹

Although he would have ended up with all the community property and quasi-community property, he would have had to share Doherty’s separate property with her mother.¹⁰

What We Know about Her Estate Plan

At present, the exact terms of Doherty’s estate plan are unknown, but we do know that Doherty’s mother played an important role in her life and was someone she wanted to provide for. This lack of public information may be because Doherty utilized a trust or beneficiary designations as part of her estate plan. The benefit of both strategies is that the matter stays out of the courts and the public eye. However, utilizing a trust allows for additional restrictions and instructions about how a beneficiary receives their inheritance, while naming someone as a beneficiary via a beneficiary designation will usually result in the beneficiary receiving the full amount outright with no additional protections or restrictions.

We Are Here to Help

We know that going through a divorce and planning for your incapacity and death can be stressful. We are here to help you through this rough chapter so that you can craft a protected future for yourself and your loved ones. Please call us to schedule an appointment to discuss how we can create a plan to meet your unique needs.

1. CDC, Marriage and Divorce, National Ctr. for Health Statistics (Mar. 14, 2024), https://www.cdc.gov/nchs/fastats/marriage-divorce.htm. ↩︎
2. Diana Cabrices, Shannen Doherty’s Estate: When Timing is Everything, WealthManagement.com (Aug. 13, 2024), https://www.wealthmanagement.com/print/161390. ↩︎
3. Shannen Doherty finalized divorce hours before death, AP (July 18, 2024), https://apnews.com/article/shannen-doherty-divorce-death-iswarienko-laura-wasser-0d9fbb475ae64fed1ccdc0a03eb69cf6. ↩︎
4. Id. ↩︎
5. Ryan Nauman, Shannen Doherty’s Estate: Actress Left Behind $6 Million Malibu Mansion, 7-Figure Sum for Family, Y!entertainment (July 14, 2024), https://www.yahoo.com/entertainment/shannen-doherty-estate-actress-left-105924129.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8%E2%80%A6. ↩︎
6. Id. ↩︎
7. Elyse Dupre, Shannen Doherty Details Letting Go of Her Possessions Amid Cancer Battle, ENews (Apr. 2, 2024), https://www.eonline.com/news/1398634/shannen-doherty-details-letting-go-of-her-possessions-amid-cancer-battle. ↩︎
8. Id. ↩︎
9. Cal. Prob. Code § 6401(a)–(c). ↩︎
10. Id.  § 6401(c)(2)(B). ↩︎

One common way to avoid the probate requirement for real estate after the owner dies is to add children or other individuals to the property title as joint owners with rights of survivorship. When joint owners have survivorship rights and one joint owner passes away, the remaining owners automatically receive the entire interest of the deceased owner. 

For example, if there are three joint owners with rights of survivorship, when one passes away, the two remaining owners each own 50 percent of the real estate by operation of law. No court involvement or probate is required to make this transfer. When the second owner passes away, the surviving owner owns 100 percent of the real estate. Again, no probate is required to make this transfer.  

To create joint ownership with survivorship rights, the current owner prepares a new deed that transfers the property from themselves (as the original owner) to themselves and the children or other individuals they would like to share in ownership. The deed should also include language to indicate that the recipients are joint owners with rights of survivorship. The exact language included in the deed will be governed by state law. The signed deed is then recorded in applicable public land records.

Many believe they do not need an attorney to help them prepare and record a new deed. Instead, they think a deed template can simply be downloaded online or obtained from a book, filled out, signed, and then easily recorded. However, deeds are legal documents that must comply with state law to be valid. In addition, in many states, property will not pass to the other owners listed in a deed free of probate unless certain specific legal terms are included in the deed.

What Happens if There Is a Mistake with My Deed?  

If there are problems with a defective deed or a deed is invalid, and it is discovered before the owner dies, then the problems may be addressed by preparing and recording a corrective deed in the applicable public land records, depending on your state law. This should be done only with the assistance of an attorney to ensure that the correction is actually a correction and causes no additional issues with the deed or property title.

Unfortunately, problems with a defective or invalid deed are often not discovered until after the owner’s death. If this is the case, the problems cannot be fixed with a corrective deed since the deceased owner is unable to sign it. Instead, the property will most likely need to be probated to correct the problems with the title. Aside from the probate process taking time and costing money for legal fees and court expenses, the property cannot be sold until the problems with the title have been sorted out in probate court. Worse yet, the property could end up being inherited by someone the owner did not want receiving it, either because they intended to disinherit the individual or because they wanted someone else to receive the property. 

What Should You Do?

If you want to add your children or other beneficiaries to your deed to avoid probate and you think you can save a few bucks by using a form you find online or in a book, think again. Deeds are legal documents with very specific requirements and are governed by different laws in each state (in other words, a deed valid in New York may not necessarily be valid in Florida).  

If you want your home or other real estate to pass to your children or other beneficiaries without probate, seek the advice of an attorney familiar with the probate and real estate laws of the state where your property is located. This will ensure that the deed will be valid and that your property will, in fact, avoid probate and pass on to your intended heirs. Adding individuals to your deed may not be the best approach, depending on the circumstances. There are considerations related to gifting, tax consequences, and potential misuse that you may not have yet considered. In addition, if your ultimate concern is avoiding probate, an experienced estate planning attorney can discuss all the options available to you to ensure that any actions are taken in your best interest and carry out your wishes for your loved ones. If you are interested in crafting a plan to avoid probate for your loved ones, call us.

Stereotypes surrounding “only child syndrome” have largely been debunked, as recent studies show that only children, on average, develop social skills similar to those of children with siblings.¹ Further, outdated perceptions surrounding only children have shifted as the average size of the American family has shrunk, and one-child families have become far more common.

Raising an only child can still sometimes present unique challenges for both the child and the parents, especially in the area of estate planning. In some ways, having one child simplifies the process. However, leaving your entire estate to them and making them the sole decision-maker for all the roles in your estate plan may not be ideal. 

While the child’s age, personality, and lifestyle are major factors when estate planning with an only child, there are other considerations to keep in mind. 

The Shrinking American Family 

Large families used to be the norm in the United States. At the peak of the baby boom (1946–1964), the average American family had 3.7 children, compared to 1.9 currently.² 

Around one in five households today are one-child families,³ and census data show that one-child families are the fastest-growing family unit in the United States. From 1976 to 2015, the number of parents with one child doubled from 11 percent to 22 percent.⁴ 

Providing for Your Only Child in an Estate Plan

Generally, parents of only children are often in a better position to provide for them economically for multiple reasons. Higher educational attainment among parents is often associated with fewer children, and there is a strong correlation between education and income. Forgoing multiple children can also mean that parents have more resources available for raising their only child, which from birth to age 18 was estimated to cost more than $310,000 in 2022.⁵ 

Increasingly, the costs of raising a child do not end at age 18. Today, approximately 45 percent of young adults (18 to 29 years old) live at home with their parents,⁶ and many remain financially dependent on their parents for support.⁷ 

Findings from a recent Pew Research survey show that most parents and young adults rate their relationship with one another as very good or excellent.⁸ However, concerning estate planning, there appears to be a disconnect between the parents’ expectations and the child’s. 

A 2024 study from Northwestern Mutual found that 32 percent of millennials and 38 percent of Gen Z expect to receive an inheritance—but only about 22 percent of Gen X and boomer parents plan to leave one.⁹ Although 35 percent of boomers said giving a financial gift to the next generation was very important, only 11 percent indicated it was their top financial goal.¹⁰

Northwestern Mutual says that the study finds “a considerable gap exists between what Gen Z and millennials expect in the way of an inheritance and what their parents are actually planning to do.”¹¹

Among children expecting to receive an inheritance, half consider it “highly critical” or “critical” to their long-term financial security.¹² That number is highest for millennials (59 percent), including 26 percent of millennials who said they will not be able to achieve long-term financial security without an inheritance.¹³ 

With all this in mind, leaving everything to an only child in an estate plan is the most straightforward option for parents. However, there is no legal obligation to leave a child anything in your estate plan. 

Even if your child no longer relies on you financially, parents can have good reasons for limiting a child’s inheritance or disinheriting them altogether. Whether you are estranged from your adult child, they do not need the money, or they are not responsible enough to handle an inheritance, your estate plan is your prerogative—and yours alone. Should you decide that somebody else—such as other family members, close friends, or a charity—is more needy or deserving, it is your right to leave your money and property to them instead of your child. 

Of course, gifting to loved ones upon your passing is not an all-or-nothing proposition. You can split gifts among a child and other beneficiaries. If you have concerns about your child receiving a lump-sum inheritance, you can place money for them in a trust and name a trustee to manage the money for them, with distributions made at the trustee’s discretion or tied to incentives and milestones (e.g., holding a job, getting married, or starting a business). 

Your Only Child’s Role in Your Estate Plan

Creating an estate plan involves naming key decision-makers who will act for you during your life (in other words, during a period of temporary or permanent incapacity) as well as after you are gone. You may be considering appointing your only child to some or all of these roles: 

• Personal representative/executor. This is the person named in a will (or appointed by the court if there is no will) to wind up your affairs after your death. Their responsibilities include inventorying, locating, and distributing your money and property, paying outstanding debts, filing a final tax return, submitting court documents, and communicating with beneficiaries or heirs. 
• Successor trustee. This is the person you name in your revocable living trust to manage the trust’s accounts and property for the benefit of the beneficiaries you name. A common estate planning strategy is to name yourself as the initial trustee of a trust that holds your money and property and provides instructions about distributing them during your life and when you pass away. 
• Agent under a power of attorney. Powers of attorney are legal documents that allow you to name other people (your agents) to handle your financial and medical affairs on your behalf when you are unable to do so. The individual you nominate as your agent or attorney-in-fact can be given broad, unilateral legal authority to make important health and money decisions for you when necessary. 

Each of these roles comes with significant responsibility. Making your only child responsible for all of them might be too much for them to handle. Ask yourself the following questions: 

• Does your child have the right skills and aptitudes for this role?
• Do you trust them with your finances or to make your medical decisions the way you would like them to be made?
• Can they make tough decisions, handle pressure, and uphold legal duties?
• Do they have the right disposition to handle any disputes that might arise with creditors or beneficiaries? 
• Do they have a busy professional or personal life that might interfere with their obligations to you and your estate? 

Just as you are under no obligation to leave everything (or anything) to your only child, you are not required to name them as a key decision-maker in your estate plan. As an alternative, you could choose a close friend, a family member, or a professional (e.g., a professional or corporate trustee) to fill these roles. 

Your choice of executor, successor trustee, and attorney-in-fact should be based on the person’s ability to carry out the necessary duties competently—not on feelings of loyalty or obligation. 

Dividing the powers among different individuals can also provide checks and balances that prevent a single individual from exercising too much control over you and what you own. Naming your only child to multiple roles may raise conflict-of-interest questions as well, especially if they are not the sole or primary beneficiary.

Balancing Head and Heart in Your Estate Plan

Parents are no strangers to weighing practical concerns for their children alongside the unconditional love they feel for them. Striking the right balance does not necessarily get easier as you age and your child becomes an adult. It might even become more complicated as you sit down to design an estate plan and make the important decisions in creating a comprehensive plan. 

For advice about creating an estate plan that is best for everyone—you, your child, friends, family, and others you care about—while accomplishing your specific goals, contact an estate planning attorney and schedule a meeting. 

1. Zara Abrams, Only children are often misunderstood. Take a closer look at the science. 55 Monitor on Psychology 6 (Sept. 1, 2024), https://www.apa.org/monitor/2024/09/only-children. ↩︎
2. The Only-Child Family, Psychology Today, https://www.psychologytoday.com/us/basics/family-dynamics/only-child-family (last visited Oct. 25, 2024). ↩︎
3. Id. ↩︎
4. Gretchen Livingston, Family Size Among Mothers, Pew Rsch. Ctr. (May 7, 2015), https://www.pewresearch.org/social-trends/2015/05/07/family-size-among-mothers/. ↩︎
5. Kendra Holten, The True Cost of Raising a Child, IFS (July 17, 2023), https://ifstudies.org/blog/the-true-cost-of-raising-a-child. ↩︎
6. Elizabeth Napolitano, More young adults are living at home across the U.S. Here’s why., CBS MoneyWatch (Sept. 21, 2023), https://www.cbsnews.com/news/gen-z-millennials-living-at-home-harris-poll/. ↩︎
7. Dylan Croll, A lot of young adults aren’t financially independent. Here’s what parents can do (July 9, 2023), https://finance.yahoo.com/news/a-lot-of-young-adults-arent-financially-independent-heres-what-parents-can-do-173631356.html. ↩︎
8. Rachel Minkin, et. al., Parents; relationship with their young adult children, Pew Rsch. Ctr. (Jan. 5, 2024), https://www.pewresearch.org/social-trends/2024/01/25/parents-relationship-with-their-young-adult-children/. ↩︎
9. Northwestern Mutual, As $90 Trillion “Great Wealth Transfer” Approaches, Just 1 in 4 Americans Expect to Leave an Inheritance (Aug. 6, 2024), https://news.northwesternmutual.com/2024-08-06-As-90-Trillion-Great-Wealth-Transfer-Approaches,-Just-1-in-4-Americans-Expect-to-Leave-an-Inheritance. ↩︎
10. Id. ↩︎
11. Id. ↩︎
12. Id. ↩︎
13. Id. ↩︎

You regularly check the balances of your retirement, bank, and investment accounts. But when was the last time you checked the beneficiary designations on these accounts (and really, all the other accounts that allow you to name a beneficiary)? 

It may have been years since you first opened an individual retirement account, bought a life insurance policy, or started putting money into a health savings account. At the time, you named someone—most likely your spouse, if you were married, or another loved one if you were single—who will inherit the money when you pass away. 

However, you might have since married, divorced, or remarried without updating your beneficiaries. Or maybe another event, such as a birth or death in the family, has altered your estate planning strategy. 

Beneficiary designations are a crucial part of an estate plan and a way to avoid probate. But they supersede instructions in a will or trust and should be regularly reviewed to ensure that they align with your legacy goals. 

Accounts That Have Beneficiary Designations

Beneficiary designations allow individuals to specify who will receive the funds or accounts upon their death, bypassing probate and allowing these items to pass more quickly to the people or entities named as beneficiaries. 

Many types of accounts and financial instruments such as the following allow for beneficiary designations (including payable-on-death or transfer-on-death account designations): 

• retirement plans, such as a 401(k), 403(b), individual retirement account (IRA), Roth IRA, orpension plans
• life insurance policies
• annuities
• checking and savings accounts
• certificates of deposit (CDs)
• health savings accounts (HSAs)
• 529 college savings plans
• employer-sponsored benefits (e.g., group life insurance and employee stock plans)
• brokerage accounts
• mutual funds
• US savings bonds

Some states also allow real estate to pass to a beneficiary using a transfer-on-death deed, a beneficiary deed, or a Ladybird deed, also known as an enhanced life estate deed.

How a Beneficiary Designation Works

Beneficiary designations take precedence for distribution over other documents in an estate plan. The individual or entity you name as an account beneficiary will automatically receive the money or account, usually without it passing through the court-supervised probate process.

A beneficiary can be any of the following: 

• a person, such as a spouse, child, partner, family member, or friend
• a trust
• a charity
• your estate

It is also possible to name multiple parties as beneficiaries of the same account, allowing you to divide the money or account among them. For example, you could have half the money in your investment account pass to your spouse and split the other half between your two children. 

Federal law, your state, or the account administrator may require that your spouse be listed as a primary beneficiary and receive a minimum amount before you can list other beneficiaries, unless the spouse waives their rights. 

If you name your estate as a beneficiary, the money or account could be subject to probate. 

Naming Primary and Contingent Beneficiaries 

In addition to naming a primary beneficiary (the person first in line to inherit the money or account), most policies let you name at least one contingent (backup or secondary) beneficiary. 

A secondary beneficiary receives the money or account if the primary beneficiary is unable or unwilling to accept it (e.g., they predecease the account holder or die at the same time). While primary and contingent beneficiaries provide some probate avoidance security, if there is no primary beneficiary to receive the money or account and no listed contingent beneficiary, the money or account could be subject to probate and distributed according to applicable state law. 

With your estate planning attorney’s guidance, consider naming your trust, if your estate plan includes one, as primary or contingent beneficiary to help avoid the scenario where both your primary and contingent beneficiaries predecease you or are otherwise unable to take the funds.

Why You Need to Review Beneficiary Designations Regularly

A beneficiary designation supersedes any instructions in a will or trust about how to distribute money in an account or policy. If your will states that your money and property should go to one person but your retirement account designates someone else as the beneficiary, the beneficiary designation on the account takes precedence.

Many people make the mistake of assuming the opposite: that their will or trust overrides beneficiary designation forms. It is also problematic when an account owner submits a beneficiary form to a plan custodian or administrator but never confirms that the designation was processed. There could even be instances where the beneficiary form was left blank, either accidentally or with the intent to fill it out later. 

A beneficiary form that is not up to date can result in assets getting tied up in probate or not passing to the correct beneficiaries. Not updating a beneficiary form could have unintended consequences, such as leaving money or the account to a loved one who is now incapable of handling them or to someone you no longer want receiving the funds. 

An estate plan should be regularly updated to account for life changes. This includes examining beneficiary forms when the following types of major life events occur: 

• divorce
• marriage
• birth or adoption of a child or grandchild
• loss of a spouse, child, or other beneficiary
• the end of a relationship
• closure of an account and moving the assets to a new account
• a plan administrator being bought by or merging with another financial institution
• an employer changing plan administrators for the benefits it provides
• changes in the law that affect how money and accounts can be transferred at death

While the events listed above can warrant an immediate change in beneficiary designations, it is prudent to check designations every three to five years even when you think nothing has changed. 

Changing your mind about your overall estate plan is another time to consider switching beneficiaries. For example, your original intent may have been to divide your money and property evenly among your children, but you have since decided that one child needs more money than their siblings. You may need to update your retirement account to make that child the sole account beneficiary. 

How to Change a Beneficiary Designation

Updating beneficiaries is straightforward, but the actual process can depend on the type of account: 

• Many accounts can be checked and changed online.
• Some accounts require filling out paperwork.
• In certain states, a spouse’s written consent may be required to name someone else as primary beneficiary.
• A beneficiary change could require a sign-off from a plan administrator. 

When naming a beneficiary, be as detailed as possible. Most designation forms ask for a person’s full legal name and their relationship to you. You may also need to provide details such as the beneficiary’s contact information, date of birth, and Social Security number. Part of the change process should also include requesting and saving beneficiary change confirmations from the account administrator. This is the only way to ensure that the change was successfully made.

What Can Happen When You Do Not Update Beneficiary Designations

If you fail to name a beneficiary or do not name a contingent beneficiary in case something happens to the primary beneficiary, the money or account could be subject to probate upon your death. 

The probate process can add costs and delays to settling an estate. Probated accounts and property must be reviewed by the court and distributed in accordance with a will instead of a beneficiary designation. If you do not have an existing will, the money or account would be subject to state intestacy laws, which determine who has the right to receive your money and property at your death. These laws typically give preference to a person’s spouse and children, but you may want somebody else to receive your money or accounts. 

Simple Form, Complex Estate Planning Considerations

Beneficiary designations show how even small estate planning details can have a big impact. While the form to name a beneficiary on an account is typically easy to fill out, naming—or failing to change—a beneficiary can have a major effect on your estate plan and loved ones. 

A beneficiary designation cannot be changed after you are gone. To ensure that your account money and property go where you want and how you want, talk to an estate planning attorney to put a plan in place. 

Enriching Life with a Third-Party Special Needs Trust

A special needs trust (SNT) allows an individual to provide for a disabled beneficiary without jeopardizing the beneficiary’s eligibility for needs-based government benefits. 

SNT funds can generally be used to pay for almost anything that falls outside the basic support that programs such as Supplemental Security Income (SSI) and Medicaid provide. This includes many goods, services, and experiences that these programs do not cover. 

Rules around SNTs are complicated, and a trustee’s unauthorized use of SNT funds may result in a penalty or reduction of government benefits for the trust beneficiary. 

How SNTs Work: First-Party versus Third-Party

There are two main types of SNTs: first-party and third-party. The main difference between them is that the former holds funds that the beneficiary owns or receives in a lump sum (often from a settlement or inheritance) and puts into the trust, and the latter holds funds given to the beneficiary by a parent, grandparent, or other family member or individual. Both types of SNT can hold assets such as cash, investments, life insurance policies, retirement accounts, and even real estate. 

One key difference between first-party and third-party SNTs is that when the beneficiary dies, funds in a third-party SNT are not subject to reimbursement to the state for up to the amount of the government benefits the beneficiary received during their lifetime. Although the disabled person benefits from the funds, the funds in a third-party SNT never technically belong to them. So when a beneficiary of a third-party SNT dies, any remaining trust assets can pass to other individuals or to charities. 

What a Third-Party SNT Can and Cannot Pay For

Regardless of whether an SNT is first-party or third-party, there are certain expenses that it can and cannot pay for on behalf of the beneficiary without jeopardizing government benefits.

The basic spending rule for SNTs is that the funds are intended to supplement—not replace or duplicate—needs-based government assistance benefits. They can be used for “special needs” but not for “basic support” (e.g., shelter and basic medical costs).

• In general, an SNT can cover typical ongoing expenses of everyday life that government programs such as SSI and Medicaid do not cover. 
• The funds must be used for the sole and direct benefit of the disabled beneficiary. Payments can benefit others only indirectly, such as when a beneficiary travels and needs an aide. 
• Whenever possible, SNTs should directly purchase an item or service in the trust’s name and not the beneficiary’s. 
• The trustee of an SNT should not make direct payments to the beneficiary even if the distributions are being made for allowable expenditures.

SSI, Medicaid, and SNTs

SSI includes shelter costs as part of its calculation when determining eligibility and benefit amounts. SSI refers to payments for shelter as “in-kind support and maintenance” (ISM). ISM is any shelter expense that somebody else (including a trust) provides for an SSI recipient. SSI considers ISM a type of unearned income. The following items fall into this category and generally should not be paid for by an SNT:

• rent or mortgage payments
• condo and HOA fees
• property taxes
• utilities such as water, gas, and electricity

Medicaid rules and coverage vary by state, but typically, SNTs can pay for the following types of medical and dental expenses that Medicaid does not cover: 

• inpatient psychiatric services for age-excluded individuals
• over-the-counter medications
• elective surgeries and procedures
• dental and vision care
• hearing aids
• a private room instead of a shared room at a care facility
• certain specialist providers

SNT funds disbursed in a way that violates SSI or Medicaid rules can impact a disabled person’s continued eligibility for those benefits. 

The Social Security Administration may reduce SSI benefits by up to one-third of the federal benefit rate if SNT funds are used for ineligible purchases. Benefits may also be reduced if money is paid directly from the trust to the disabled beneficiary. Money paid directly to an SSI recipient to provide them with shelter could potentially reduce their SSI benefit dollar for dollar because this type of distribution is treated as unearned income regardless of what the funds are being used for. 

If an SSI beneficiary receives cash (or a cash equivalent such as a refundable gift card) from an SNT, their benefit may be reduced by one dollar for each dollar received, up to the point where they lose SSI completely. A beneficiary could also lose their SSI altogether if noneligible trust payments increase what the Social Security Administration calls “countable income.” Losing SSI eligibility could lead to losing Medicaid since, in many states, SSI recipients automatically qualify for Medicaid. 

Allowable SNT Purchases

Despite these restrictions on SNTs, they can be used to pay for many special expenses on the beneficiary’s behalf, such as the following items and activities: 

• clothing
• phone, cable, and internet services
• a vehicle, insurance, maintenance, and fuel
• tuition, books, and tutoring
• travel and entertainment
• household furnishings and furniture
• fitness equipment
• computers, television, and other electronics
• alternative medical treatments
• parties or celebrations

In addition, the money required to administer a third-party SNT, including attorney’s fees and trust accounting fees, can be paid from the trust. 

Creative Ways to Use Third-Party SNT Funds

Bearing in mind the restrictions on SNTs, trustees have wide latitude with how they can spend trust funds. As long as expenditures do not break the rules and put benefits at risk, a trustee is free to put money toward special purchases that go above and beyond the simple necessities and enrich the beneficiary’s life. Here are a few ideas for inspiration: 

• Vacations. Airfare, hotel accommodations, cruises, and other travel-related costs should be coverable by the trust. 
• Entertainment and hobbies. Support a beneficiary’s passion by using the trust to pay for movies, concerts, theater tickets, arts and crafts supplies, photography equipment, musical instruments, and physical and digital media subscriptions. 
• Recreational activities. SNTs can pay for membership fees, camps, or lessons for activities such as sports, exercise, and outdoor excursions.
• Adaptive recreational equipment. To stay active outdoors, an SNT beneficiary might need specialized equipment, such as adaptive bikes, all-terrain wheelchairs, or modified vehicles—all of which can be paid for by an SNT. 
• Technology and electronics. Buy the beneficiary a new computer, tablet, or smartphone to stay connected and curate their interests. Funds can also go toward internet fees or a mobile phone plan. 
• Therapeutic services and programs. Nontraditional medicine such as aromatherapy, reiki, yoga, and massage therapy, as well as spa treatments and grooming services, offer a wellness boost and are usually not covered by Medicaid. 
• Pets and pet care. Research shows that pet ownership is associated with lower stress, depression, and anxiety. The trust can cover the costs of pet adoption, veterinary care, food, grooming, pet toys and supplies, and training. 
• Education and skill-building. Educational programs, classes, or workshops that can help a beneficiary build a skill set and increase their self-confidence may be paid for by the trust. 
• Home entertainment and furnishings. Although most housing-related expenses are not allowed from an SNT, many of the items that make a house a home—such as comfortable furniture, stylish décor, and an engaging sound system—are allowed. 
• Cultural and religious activities. Use money from the trust to foster participation in cultural or religious events, such as festivals, ceremonies, or annual celebrations that the beneficiary finds meaningful.

Get Help Managing an SNT

SNTs are highly technical and complicated, and administering one for a disabled beneficiary comes with significant responsibility. Not following trust rules can result in the reduction or loss of crucial public benefits.

There may be instances in which a beneficiary’s quality of life is worth more than a reduction in their government benefits. But a trustee must always balance short-term gain with long-term goals whenever they make a distribution, especially if a beneficiary requires Medicaid to pay for their long-term care costs—a central concern for many persons with disabilities. Trustees also have legal duties under general trust law requirements and can face legal action if laws are not carefully followed. 

Our estate planning attorneys can help you set up an SNT for a disabled loved one and assist with trust administration, as either trustee or co-trustee or in an advisory capacity. Schedule a consultation to learn more. 

Many estate plans incorporate irrevocable dynasty trusts, which can offer benefits such as tax minimization and asset protection. The benefits of these types of trusts continue for a surviving spouse’s lifetime and several future generations. The actual duration of the trust can be affected by such factors as state law and how long the money and property last. Some states have rules specifically addressing how long a trust can exist. Since these trusts are designed to span multiple decades, clearly defining who will be a trust beneficiary in each generation is essential.

Who are your descendants?

In the past, the definition of descendant was straightforward: a person who can be traced back to a specific ancestor through the same bloodlines. But planning for today’s more diverse family structures now encompasses much more than biological heirs:

• Adopted beneficiaries. Should the definition of descendant in your trust include a person who your child, grandchild, or great-grandchild legally adopted? What happens if your child, grandchild, or great-grandchild gives a biological child up for adoption? Should a blood heir who has been adopted out of your family be included as your descendant? Consider explicitly including or excluding adopted minor and adult beneficiaries in the definition of descendant in your trust agreement.

• Stepchildren. Should the definition of descendant in your trust include a stepchild of your child, grandchild, or great-grandchild? What if your heir does not legally adopt the child but treats them like one of their own children? You may have the opportunity to get to know your stepchildren (and even your step-grandchildren) and decide whether to include or exclude them in the definition of descendants for the purposes of your estate plan (in fact, you could include some and exclude others). That said, it is important to decide and communicate whether stepchildren in later generations whom you have not met should be included or excluded as beneficiaries of your trust.

• Beneficiaries conceived using assisted reproductive technology. Should the definition of descendant in your trust include a child, grandchild, or great-grandchild conceived using artificial insemination or a surrogate mother? What about a child, grandchild, or great-grandchild conceived using an anonymous sperm or egg donor? While no one knows what the future definition of assisted reproductive technology will encompass, the definition of descendant in your trust agreement should specifically include or exclude heirs conceived using such technologies.

Carefully Defining Your Trust Beneficiaries Will Keep Your Heirs Out of Court

Who qualifies as your descendant 20, 30, or even 50 years into the future should be carefully considered and defined explicitly within your plan, especially when creating an irrevocable trust that cannot be modified and is intended to benefit multiple generations. Clearly defining who will be entitled to receive money and property from your trust will allow for a smooth transition between generations and keep your heirs and trustees out of court.  

If you have questions about the definition of descendant used in your trust or would like to discuss how you can clearly define your trust beneficiaries, please call our office.

Many members of the next generation are banking on a sizable inheritance as part of an unprecedented intergenerational wealth transfer occurring in the United States right now. However, research shows a growing disconnect between how much children expect to receive and how much their parents plan on leaving them.

You generally have no right to be included in your parents’ estate plan and usually cannot challenge their will or trust in court just because you think it was unfair. However, if you believe something nefarious happened, such as somebody taking advantage of a parent and convincing them to change their estate plan, you should speak up.

The Great Wealth Transfer and Resetting Inheritance Expectations

Tens of trillions of dollars are expected to pass from older Americans to younger Americans over the next two decades in what financial experts are calling “The Great Wealth Transfer.”

According to consulting firm Cerulli Associates, $84 trillion in assets (accounts and property) is set to change hands through 2045.¹ The primary recipients will be Gen Xers, millennials, and Gen Zers, who could inherit around $72 trillion through 2045, with the rest going to charity.² 

Other estimates put this transfer of wealth at upwards of $140 trillion, “marking one of the most significant wealth transfers in history,” says philanthropic organization CFAAC.³ 

However, CFAAC cautions that adult children may not receive as much as they expect because their parents are living longer, spending more of their money in retirement, and may have high healthcare costs that eat into their savings.⁴ 

More than half of millennials say they expect to inherit approximately $350,000 or more from their aging parents.⁵ But baby boomers say they plan to leave far less than that to their kids.⁶ One survey found that many do not plan to leave behind any money.⁷ In another study, just 26 percent of Americans, including 22 percent of baby boomers, said they expect to leave an inheritance.⁸ 

Part of this disconnect is that parents are not communicating with their family about their inheritances—or lack thereof. Research from Edward Jones indicates that more than a third of Americans do not plan to discuss wealth transfers with their family.⁹ 

Federal Reserve data shows that the probability of inheriting from anyone, at any age, is just 7.4 percent. The chance of inheriting from a parent is even lower—just 4.6 percent.¹⁰ 

Dealing with the Disappointment of Disinheritance

You learned that you were left out of your parents’ estate plan. Now what? 

Know Your Rights

In most cases, adult children are not entitled to inherit their parents’ money and property under the terms of their parents’ estate plan. You may, however, have the right to receive a copy of their will if they have one. If they used a trust to manage their assets, it may be more difficult for you to get a copy if you were not a named trust beneficiary.

• If the will or trust contains language that clearly, directly, or explicitly disinherits you, you may not be able to contest it, absent some additional factors. 
• If the will or trust contains no such language, the court might presume that you were inadvertently left out and allow you to contest it. 

You might also be able to dispute a parent’s will or trust in the following situations: 

• You suspect that they were not of sound mind when drafting their will or trust. 
• You have reason to believe they made their will or trust under duress or undue influence. 
• A factual error resulted in you being left out of the will or trust. For example, a parent disinherited you under the erroneous belief that you were abusing drugs or alcohol and you can prove that you were or are sober. 

Ask Questions

Before seriously considering a will or trust contest—which could be a long, expensive, and ultimately fruitless undertaking—it may be worth asking a few questions to put things into perspective: 

• Did your parents discuss their estate plan with you? 
  • If they said you were going to receive something and you did not, this could be an issue. 
  • They may have prioritized giving gifts while living and considered those gifts to be your inheritance, such as helping you with a big purchase like a home or taking you on a vacation. 
  • They might have said that they were disinheriting you or leaving you nothing, in which case the outcome is predictable and not necessarily a cause for alarm. 
• Did they stay quiet about inheritance issues? 
  • Some parents find it uncomfortable to discuss inheritance and wealth transfer matters with their children, and many avoid the subject altogether. 
  • If you do not know what their wishes were, it may be harder to argue that you were supposed to receive something.
• What was their financial and health situation? 
  • Longevity and lifestyle changes are altering inheritance plans. People are living longer today than in previous generations and often spend much of their wealth during these additional years of life. Health-related and long-term care expenses can deplete a lifetime of savings and leave little or no money for inheritance. 
  • If your parents lived an active lifestyle with lots of travel, entertainment, dining out, and the purchase of big-ticket items, they may have spent your would-be inheritance on themselves. 
  • If they were in poor health at the end of their life, they may have had to spend down their savings to qualify for Medicaid to cover long-term care.
• Did someone else receive the money? 
  • Assuming your parents died owning a decent amount of wealth, and depending on who ended up inheriting from them, finding answers to questions about your disinheritance can become more complicated. 
  • Money left to a sibling or another family member who was in greater financial need than you could explain why you were omitted. 
  • Money left to a charity might explain your omission if the cause was near and dear to them for many years. 

Red Flags

Try to get a copy of your parents’ will or trust so you can find out who inherited from them and whether there were any recent changes to their estate plan. This information could raise red flags that warrant further investigation. For example: 

• They left the money to a charity, religious organization, or other group with which they only recently became involved. 
• They left everything, or at least a considerable amount, to a caregiver you do not know well and who does not have a history with the family. 
• A parent was in poor health and could have been easily exploited by a caregiver or somebody else who convinced them to change their will or trust at the end of their life. 
• There was a recent change to the estate plan—in particular a change that is difficult to explain. 

You may not need to request a copy of a will from a family member if the estate was subject to probate. Probated wills become public court records that anyone can view in their entirety. The public records in a probate matter also contain information about what assets were part of the estate and who the beneficiaries are. You should be able to see who inherited what and how much they inherited. The records also identify the executor of the estate, who may be able to provide further insights. 

Discuss Your Disinheritance with an Estate Planning Attorney

Not receiving an inheritance is surprisingly more common than one might think. If you were left out of a parent’s estate plan, you might feel shocked, angry, and confused, particularly if they never mentioned that you would be disinherited. 

Hurt feelings are probably not enough to challenge a parent’s estate plan. Unless something illegal occurred in the preparation or signing of their will or trust, you may have to accept their decision, as difficult as that might be. 

That does not mean you should not ask questions and take the next steps in response to any red flags. To discuss your disinheritance rights and options, schedule a meeting with an estate planning attorney.

1. Cerulli Anticipates $84 Trillion in Wealth Transfers through 2045, Cerulli Associates (Jan. 20, 2022), https://www.cerulli.com/press-releases/cerulli-anticipates-84-trillion-in-wealth-transfers-through-2045.  ↩︎
2. Id. ↩︎
3. The Great Wealth Transfer: Millennials Be Prepared, CFAAC (Mar. 22, 2024), https://www.cfaac.org/news/great-wealth-transfer-millennials-be-prepared.  ↩︎
4. Id. ↩︎
5. Jessica Dickler, The Great Wealth Transfer Has Started—But Millennials, Gen Z May Not Inherit As Much As They Anticipate, NBC News (May 7, 2024), https://www.nbcnews.com/business/personal-finance/great-wealth-transfer-started-millennials-gen-z-may-not-inherit-much-a-rcna151062.  ↩︎
6. Id. ↩︎
7. Angela Mae, Great Wealth Transfer? See How Much Money Boomers Actually Plan to Pass Down, Nasdaq.com (Aug. 16, 2024), https://www.nasdaq.com/articles/great-wealth-transfer-see-how-much-money-boomers-actually-plan-pass-down.  ↩︎
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