Probate And Switch

Probate instruments such as wills, trusts, guardianships and powers of attorney are being used to redistribute property in a manner contrary to the intended wishes of hard-working Americans. These are folks who mistakenly take the “bait” put forth regarding estate planning documents. Lawyers are the first to extol the need to avoid “the high cost of probate” or “government intrusion” as well as to protect one’s estate from “greedy heirs and lawyers.” During this process, however, the real “switch” potential is rarely discussed. That is, members of this same industry (maybe your lawyer) turning the tables and using your estate documents to deny assets to rightful beneficiaries/heirs and instead perpetrating an Involuntary Redistribution of Assets (IRA). Disgruntled family members excluded from the plan or else wanting more than their specified share easily connect with attorneys willing to assist. It’s an unflattering reflection on the legal industry but with this backdrop, IRA actions are quietly happening everyday.

Having said this, estate planning that includes applicable legal instruments (will, trust, powers of attorney - medical and otherwise, etc.) continues to be a critical component of any financially responsible person’s life. People must, however, become aware of estate management’s dark side. The dangers posed by unscrupulous attorneys, a pay-to-play legal system and would-be looters with an inflated sense of entitlement are increasingly visible. IRA actions are affecting Americans from a variety of socioeconomic backgrounds. With the large transfer of wealth coming in the next 20 or so years, these cases will likely skyrocket. People think proper estate planning will protect them – wrong! People think they don’t have enough assets to be a target – wrong!! There is no inoculation from the threat of IRA. Forewarned, however, is forearmed.