Many members of the next generation expect to receive a significant inheritance as part of the ongoing Great Wealth Transfer. However, research reveals a growing gap between what children anticipate inheriting and what their parents actually plan to leave behind. If you've been left out of your parent's estate plan, here's what you need to know and how you can navigate this difficult situation.
The Great Wealth Transfer: Resetting Your Inheritance Expectations
Over the next two decades, an estimated $84 trillion in assets will transfer from baby boomers to Gen Xers, millennials, and Gen Zers. While this unprecedented shift is expected to reshape wealth distribution, many parents are living longer, spending more in retirement, and facing higher healthcare costs, meaning that the expected inheritance may be much smaller than anticipated—or non-existent.
Studies show that while more than half of millennials expect to inherit $350,000 or more, a large number of baby boomers are planning to leave little to nothing for their children. Many parents don't discuss their estate plan with their family, leading to a disconnect between expectations and reality.
What to Do if You Were Disinherited
If you find out that you were left out of your parent's estate plan, you may feel hurt or confused. However, it's important to know your rights and consider the following factors before taking action.
Know Your Legal Rights
In most cases, adult children are not legally entitled to inherit from their parents. However, you do have the right to a copy of your parent's will if there is one, or to request information about their trust if you are a named beneficiary. You may be able to contest the estate plan under certain circumstances, such as:
- Lack of mental capacity: If you believe your parent was not of sound mind when creating their estate plan.
- Undue influence: If someone coerced or manipulated your parent into changing their will or trust.
- Factual errors: For example, your parent disinherited you due to a misunderstanding, such as believing you were struggling with substance abuse when you were not.
Ask Key Questions
Before considering a will contest, ask yourself a few important questions to help put the situation into perspective:
- Did your parents discuss their estate plan with you?
- Did they make gifts to you while alive and consider that your inheritance?
- Were they silent about inheritance plans, making it harder to predict what they intended?
- Did your parents live longer than expected or face high healthcare costs that diminished their estate?
Investigate Red Flags
If you suspect that something unusual occurred, try to gather information about who inherited from your parents and whether there were any recent changes to their estate plan. Red flags include:
- A sudden shift in beneficiaries to someone unexpected, like a new charity or caregiver.
- A recent change to the will or trust when your parent was in poor health or vulnerable.
Dealing with Disinheritance Disappointment
Not receiving an inheritance is more common than many realize. If you've been disinherited, your next steps depend on the specific circumstances. In some cases, asking questions and investigating red flags may uncover potential grounds for challenging the estate plan. However, unless there's evidence of fraud or duress, you may need to accept your parent's decision.
Speak with an Estate Planning Attorney
If you believe you were unfairly left out of your parent's will or trust, speaking with an experienced estate planning attorney is crucial. They can help you understand your rights and evaluate whether you have a case for contesting the estate plan.
Contact us today to discuss your situation and learn more about your legal options.
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