When someone dies, ideally their surviving family members will come together to grieve. In reality, they often spend their time fighting over finances, especially if their late loved one didn’t have a detailed plan in place. In fact, 58% of people have experienced conflict, or know someone who has, because of the absence of an estate plan.
When someone dies without taking steps to control the distribution of their assets, not only is their family more likely to fight, they also lose the chance to leave the legacy they intended. And it can end up leaving a huge mess for the people they cared about.
Let’s say, for example, that Dylan’s grandfather, Joe, made it clear throughout the family that he wanted his truck to go to Dylan when he died. In fact, Joe repeatedly discussed this planned gift in the months leading up to his death, as Dylan had just started a contracting business and the truck could help his company grow.
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Unfortunately, while Joe told everyone he wanted Dylan to get the truck, he never wrote anything down. Dylan’s dad, Pete, was Joe’s only child, and Joe’s wife died first. This meant Pete inherited Joe’s entire estate under intestacy laws because Joe had no estate plan in place.
Pete obviously got the truck as part of the estate. And he sold it for cash, leaving Dylan with nothing. Now Dylan is upset with Pete, and he’s wondering whether he has any recourse.
A verbal promise doesn’t control what happens after death
Sadly, experts say that Dylan doesn’t really have any options in this situation.
“The quick answer is, unfortunately, no, you don’t have legal recourse,” Fred Taylor,
CEO and attorney at Bush & Taylor, P.C., told Moneywise. “Even though everyone in the family knew your grandfather wanted to leave his truck to you, if it wasn’t written down in a will or included in a legally binding estate plan, a verbal promise is not legally enforceable.”
Sarah Ocampo, co-founding partner and probate attorney at Ocampo Wiseman Law, agreed and told Moneywise: “Once your grandfather passed away, he is no longer available to confirm his intentions. The distribution of his property will generally be controlled by his estate planning documents or by the applicable intestacy laws. The fact that other family members knew about his wishes does not necessarily make those wishes legally enforceable.”
The law has long been clear that estate planning documents must be in writing to help prevent fraud, because a dead person can’t clarify their intentions. Formal estate planning documents are the only way to make their wishes known.
“This situation is a great example of why estate planning should do more than just name beneficiaries,” Kerri Koen, an estate planning attorney at Modern Legacy Law Group, told Moneywise.
Koen said that if you want someone to inherit, you must say so clearly using the right legal tools. “Otherwise, even a wish known to the entire family may be legally unenforceable because the law cannot reliably carry out instructions that were never properly documented.”
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Dad inherited under the law, and there’s nothing Dylan can do about it
Because intestacy laws allocate assets to the closest family members when there’s no estate plan, regardless of what the deceased person may have wanted, Pete inherited free and clear.
“Your father, as the son and next legal heir according to state laws, simply inherited the truck outright, and it was within his rights to sell and keep the money, even though that feels, rightly so, unfair to you when you were verbally promised the truck,” Taylor said.
Of course, Dylan can ask his father to help him out and use some of the money from the truck sale to get a vehicle, as Joe had clearly intended. Unfortunately, since Pete already sold the truck out from under him despite knowing what Joe wanted, Pete may very well say no.
If so, Dylan’s relationship with Pete is likely to be irreparably damaged. As for Pete, he’ll have to decide whether the money he made from selling the truck is worth giving up his son’s respect.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
