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Why Proper Estate Planning Matters: A Cautionary Tale
- Geffrard Law
- Mar 1
- 3 min read
Estate planning is one of the most important steps you can take to protect your assets and ensure your loved ones are taken care of according to your wishes. However, failing to create a clear and legally sound plan can lead to confusion, disputes, and even litigation.
Consider the case of Mark and Lisa Thompson, a couple who owned a home together. What happened after their divorce highlights the importance of keeping estate plans up to date and ensuring that property transfers are legally valid.
The Estate Planning Mistakes That Led to Conflict
A Will With Conflicting Provisions
In February 2018, Mark drafted a valid will stating that his home would pass to his wife, Lisa. If Lisa predeceased him, the home would then go to his sons, Ethan and Jacob, in equal shares. At the time, this plan seemed logical and in line with Mark’s wishes.
An Informal Property Agreement
In June 2018, Mark and Lisa decided to transfer Lisa’s 50% share of the home to their son, Daniel. Mark and Daniel signed a notarized document stating that Mark would retain his 50% ownership while Daniel would receive Lisa’s share—provided Mark continued making payments on Lisa’s car.
The Divorce and Legal Ownership Change
In December 2018, the court finalized Mark and Lisa’s divorce, awarding Mark sole ownership of the home. This meant that Lisa’s prior interest no longer existed, and the informal agreement with Daniel carried little legal weight.
The Probate Process and Family Dispute
When Mark passed away, his 2021 will had not been updated to reflect his desire to leave the home solely to Daniel. As a result, during the probate process, the court followed the will’s instructions and awarded the home to Ethan and Daniel as co-owners. This led to a major dispute, as Daniel believed he was entitled to 100% ownership, while Ethan wanted to either sell the home or be bought out.
How This Could Have Been Prevented
This unfortunate situation underscores the importance of proper estate planning. Here’s how Mark could have ensured his wishes were carried out without confusion:
1. Use a Legally Valid Deed or Trust for Property Transfers
A simple written agreement is not enough to transfer real estate.
A properly executed deed (such as a quitclaim or warranty deed) should have been recorded to reflect Lisa’s transfer of her share to Daniel.
Alternatively, Mark could have placed the home in a revocable living trust to avoid probate altogether.
2. Update Your Will After Major Life Changes
Divorce, remarriage, or new heirs require an immediate review of your estate plan.
Mark should have updated his will after the divorce to clarify his intent regarding home ownership.
3. Communicate Estate Plans Clearly
Many family disputes arise from misunderstandings or lack of communication.
If Mark had openly discussed his updated wishes with all his heirs, they might have been able to work together to ensure the correct legal documents were in place.
4. Consult an Estate Planning Attorney
A legal professional could have ensured Mark’s wishes were documented properly, preventing confusion and unnecessary legal battles.
Final Takeaway: Plan Now to Avoid Family Disputes Later
Failing to create a legally sound estate plan can lead to costly litigation, family conflict, and unintended consequences. If you own property or have specific wishes for how your assets should be distributed, it’s essential to work with an experienced estate planning attorney to ensure your plan is clear, up-to-date, and legally enforceable.
Don’t leave your legacy to chance—schedule a Peace of Mind Planning Session consultation with us today to protect your assets and provide peace of mind for your loved ones.
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