Here is a story of one such happening…

Once there was a well-intentioned woman with three daughters. This mother loved her daughters and wanted to leave them her two properties.  One was a lovely cottage where she lived with her middle daughter, while the other was a small investment property outside the village. 

Being a prudent woman, she had the properties valued, and was delighted to find that the cottage was worth exactly twice what the investment property was worth.  A friend advised her that this made it simple, as she could leave one property to one daughter, and the other to the remaining daughters, and everyone would get the same amount. 

She took the friend’s advice, and had a Will prepared (from an online Will kit).  She left the first property to her youngest daughter, and the lovely cottage equally to her other two daughters, so everyone received the same amount.  The daughters all agreed this was very fair.  

The woman passed away, happy and serene. 

Then the trouble started. 

It seemed that the investment property was owned with an elderly gentleman, who did not want to sell the interest.  He was content to simply hold onto the property as an investment. The youngest daughter was not receiving any income on the investment, but also owed inheritance tax on the value of her share of the property.   

The eldest daughter went to sell the cottage as it was necessary to pay the inheritance taxes that were due on the value of the property, and it was obvious to everyone that the middle daughter could not afford the cost of maintaining it. Whenever the eldest daughter tried to sell the cottage though, the middle daughter would create havoc with whomever came to visit.  The middle daughter simply had no interest in selling the cottage, which had been her home for years.

All three daughters fought and fought, with many hurtful words shared between them. The properties were a source of anger, and did not bring them the joy that their mother had envisioned.  

How were they saved?

It was the heroic estate planning attorney that came to the aid of the three daughters and helped resolve their problems. 

The attorney negotiated with the elderly gentleman, who bought her out with enough money to pay for the taxes that she owed, and a little bit more. 

The middle and eldest daughters sat down and were guided through a frank discussion by the attorney. After the discussion, the two agreed that the middle sister did need a home, but one that was right for her. They sold the cottage and paid all taxes and expenses, and middle sister was able to get a cute little cottage of her own that she could afford, and she lived independently and comfortably. 

The two morals of this tale are first, that what may seem simple is often not quite as simple as it seems. The second is to always consult your trusted estate planning attorney before making a Will-you only have one chance to leave your assets at death, you may as well do it right.

If you have any questions regarding taxes, estate planning, or contracts – feel free to call us at 856-566-6614.  Our team of experienced professionals at Daniel I Ward & Associates are ready to assist you with all of your business and personal needs.