Protecting Your Legacy: Avoiding Laughing Heirs with Smart Estate Planning
A “laughing heir” is the term for distant relatives who could inherit from your estate if you pass away without a will and do not have closer family members to inherit. These are often relatives so far removed that they may not have had any real connection with you. Without a plan in place, state law could pass your assets to these remote heirs—leaving them to “laugh all the way to the bank.” Here is how you can make sure your assets go exactly where you want:
- Create a Will or Trust
Will: Writing a will lets you say exactly who should inherit your assets, avoiding the risk of them going to people you barely know.
Trust: A trust can give you more control. Not only does it allow you to decide how and when your assets are distributed, but it also helps your estate avoid probate, keeping things private and simpler for your loved ones, as well as providing protections for your loved ones inheritance.
- Name Beneficiaries (and Backup Beneficiaries)
Primary Beneficiaries: Identify the people or causes you want to inherit your assets—whether family members, friends, or charities.
Alternative Beneficiaries: Add backups in case your main beneficiaries can not inherit. This way, you make sure your assets go to someone meaningful even if circumstances change.
- Add a No-Contest Clause
Avoid Disputes: Including a no-contest clause discourages anyone from challenging your plan. If a beneficiary contests your will, they could lose their inheritance, helping prevent family disputes and ensuring your wishes are honored.
- Update Your Estate Plan Regularly
Adjust to Life Changes: As life evolves—marriage, kids, new relationships—it is good to check that your estate plan reflects your current wishes.
Keep Up with Law Changes: Estate laws can shift over time, and a quick review helps keep your plan effective and secure. In Virginia, we have our law changes every July of each year. Make sure your plan will work when you need it to!
- Work with an Estate Planning Attorney
Get Expert Guidance: An estate attorney can help tailor your plan to fit your situation, including advice on avoiding unintended heirs.
Close Any Loopholes: A professional ensures your documents are solid and follow state laws, which helps prevent distant relatives from unexpectedly inheriting.
Ready to secure your legacy? Wilson Law is here to help you create a plan that reflects your wishes. Give us a call at 866-603-5976 or connect with us through our online contact form to get started.
