When preparing a will or a trust... if there are multiple heirs, there could be a possibility for conflict.
Little Rock, AR (PRWEB) March 11, 2014
Hutchinson Financial today released a statement encouraging consumers not only to begin their estate planning as soon as possible, but also to add a no-contest clause into their estate plans.
“This time of the year, everyone is focused on keeping that New Year’s resolution to save money or file those tax documents to receive a refund – but we all should also be focusing on more long-term financial planning. While money is on the mind, this is an ideal time to begin the estate planning process. We especially advise those in the beginning stages of estate planning, or anyone who has an estate plan in place, to add a no-contest clause to the plan. A no-contest clause is vital to preventing disputes between multiple heirs listed in an estate plan,” stated Eric Hutchinson, President of Hutchinson Financial.
When preparing a will or a trust as part of their estate plan, many people focus just on the terms of their estate and how it will be distributed after their death. However, if there are multiple heirs, there could be a possibility for conflict – especially if one beneficiary feels that they deserve more than what they were formally designated in the estate plan.
One fairly easy and low-cost way to ensure this doesn’t happen, Hutchinson said, is to have an attorney add a no-contest clause to the will or trust document.
“What this no contest clause typically says is that you have clearly stated your intentions for the disposition of your estate and that any beneficiary is free to challenge the plan, but their inheritance will be reduced to one dollar if they contest the estate plan,” Hutchinson continued in his statement. “In my experience, any disgruntled heir suddenly gets very cooperative and compliant when they learn they’re about to see their inheritance reduced to just one dollar.”
More information about a no-contest clause in estate plans is available in the Financial Briefing Video Series online video, “Why You Need a “No Contest” Clause in Your Estate Plan.”
To learn more about how to begin investing and planning for the future, please visit the extensive library of learning tools and resources available at http://www.hutchinsonfinancialinc.com.
About Hutchinson Financial
Hutchinson Financial, founded in 1988, is an Independent Registered Investment Advisory firm based in Little Rock, Arkansas. Hutchinson Financial, Inc. is a fee-only financial planning firm committed to helping all clients reach their individual financial goals. All Hutchinson team members who provide financial planning services and investment advice to clients have professional credentials such as Certified Financial Planner, Chartered Retirement Planning Counselor, Chartered Financial Consultant, Chartered Life Underwriter, or Accredited Investment Fiduciary. To learn more about Hutchinson Financial, Inc., please visit http://www.hutchinsonfinancialinc.com.