In estate planning, a critical issue that arises during the preparation of wills and trusts is undue influence. This concept is particularly relevant when it comes to the distribution of an estate after a person passes. Here, it can raise questions about the validity of the decisions made by that individual.
Undue influence occurs when a person in a position of authority or control over someone vulnerable exerts their influence to such an extent that the vulnerable person acts outside of their free will or does something they normally wouldn’t. This issue is seen in scenarios where a vulnerable person, such as an elderly individual, makes a will or trust that benefits someone in a position of power over them. Whether that person is an appointee or a family member, it comes across as suspicious at best.
Understanding Unnatural Gifts
An unnatural gift in the context of estate planning refers to a bequest that drifts from what might be expected normally. For example, a mother with three children would naturally be expected to divide her estate equally among them. However, if a will surfaces after her passing where a significant portion or all her estate is left to a caretaker, with the children receiving reduced shares or being completely excluded, this raises questions. Such a distribution is deemed ‘unnatural’ and could indicate undue influence.
It is important to note that an individual can indeed make an unnatural gift if it is a genuine expression of free will. For instance, a mother might choose to leave a significant portion of her estate to a caretaker out of gratitude, especially if her children have not been actively involved in her life. The central question is whether the decision was made freely or under the influence of the caretaker.
Who Can Exert Undue Influence?
While caretakers are commonly associated with undue influence, incidents go well beyond them. Anyone in a position of control can potentially exert undue influence. This includes family members like children, especially in cases where one child has more access to the parent than others. In these situations, if a parent favors the child who is more present in their life, it’s crucial to examine whether this preference is a result of undue influence. Reason would suggest that the more attentive child deserves more, which further complicates figuring out how much is too much.
The central aspect of undue influence is determining whether the vulnerable person acted of their own volition. Did they make their estate decisions independently, or were these decisions given to them? Manipulation is not the only tactic that counts for undue influence, violence, threats, and fraud can also be used.
The best place to start in any plan is with a working knowledge of the subject. For those seeking more information about undue influence and its implications in estate planning, Clear Counsel Law Group offers valuable insights, providing guidance to those worried about issues with estate planning.