People often update their estate plans, and it can be very beneficial to do so. An estate plan may become outdated over time, and it is helpful to make changes regarding healthcare decisions, the distribution of assets, beneficiary designations and much more.
However, if these changes are made at the last minute, it is sometimes a red flag that could make estate challenges and disputes more likely. Below are two examples of how this could happen.
The changes favor one beneficiary
If the updates to the estate plan significantly favor one person, it could lead to challenges based on something like undue influence.
For example, say that one sibling lives close to an elderly parent and often takes care of them. Assets were originally intended to be distributed evenly between multiple siblings. But a last-minute change allocates most of the assets to the sibling who lives close to the parent, and the other siblings may think they manipulated the parent into making those changes – perhaps by threatening to withhold care and assistance.
The individual lacks testamentary capacity
A person needs to have testamentary capacity to write an estate plan or make legal changes. This can sometimes be called into question as a person gets older, particularly if they are suffering from something like Alzheimer’s disease or dementia. Changes near the end of their life could be problematic if they have lost the testamentary capacity to understand the impact those changes will have on their estate plan.
For both of these reasons, estate challenges and disputes may arise, and it is important for family members to know exactly what legal steps to take.