Succession dispute
What is a succession dispute ?
A succession dispute occurs when disagreements or conflicts arise over the distribution of a deceased person’s assets. Such disputes can emerge for a multitude of reasons, including challenges to the legitimacy of a will or differences in opinion on how assets should be allocated among the heirs. Succession disputes are often intricate and emotionally charged, frequently involving family members with diverse expectations and requirements.
These disputes may arise due to varying reasons. They can be due to varying interpretations of a will, contests over its validity, disagreements among heirs on asset distribution or valuation, or even issues related to the statutory reserved portion of the inheritance that is mandated by law to be left to specific individuals, such as a spouse or children.
Addressing these disputes might necessitate court intervention or the adoption of alternative dispute resolution methods like mediation or arbitration.
The prevalence of succession disputes
The passing of a loved one can be a particularly stressful and emotional time, which can amplify existing disagreements or give rise to new ones. Additionally, allocating the assets of a deceased individual can be a challenging endeavour, particularly if there is no clear will in place or if the assets involved are of considerable value.
Moreover, succession laws differ from country to country, adding another layer of complexity, especially when the deceased held assets in multiple countries.
Types of succession disputes
Challenging the authenticity of a will
A will outlines how a person wants their assets shared out after their passing. To be valid, a will must adhere to certain legal standards. For instance, it should be made by someone in a clear state of mind and free from undue pressure.
If an heir suspects these standards weren’t met, such as if they believe the person wasn’t mentally fit when drafting the will, they can contest its legitimacy in court.
Disputes over will interpretation
Even if a will’s authenticity isn’t doubted, how it is interpreted can lead to disputes. Ambiguous phrasing or lack of clarity regarding specific asset allocation can cause heirs to differ on the deceased’s true intentions. In such cases, heirs may have different interpretations of what the deceased truly intended, leading to a dispute.
Differences over gifts given while alive
Conflicts can also emerge regarding any significant gifts or benefits the deceased might have handed out while still alive. For instance, if a parent had given a sizable amount to one child, others might question if this should affect their inheritance shares.
Disputes among involved parties (heirs, blended families, "step" relatives)
Family dynamics can further complicate matters. In mixed families, for example, children from an earlier relationship might clash with a later spouse over asset distribution.
Issues of information transparency
Problems can also arise if all heirs aren’t privy to the same details. Say some do not have access to, or do not disclose, the deceased’s financial data; this opacity can foster distrust and disputes.
The challenges of international assets
If the deceased owned assets in several countries, the situation can get even more intricate. Since inheritance rules differ globally, disagreements can pop up over how to allocate assets and the tax rules to follow.
Disagreements on asset distribution methods
Lastly, heirs might not see eye-to-eye on how to divvy up the assets. For example, when inheriting a shared property, they might be at odds over selling it and splitting the money, or maintaining it as a familial home.
Settling succession disputes via legal proceedings
When heirs cannot amicably settle disagreements over inheritance, taking the legal route might become the only viable option. Nonetheless, seeking a legal resolution to a succession dispute has its own set of repercussions.
- Financial implications
Turning to the legal system for resolving succession disputes can be costly. Legal fees, attorney fees, court expenses, and appraisals of assets involved in the inheritance can quickly add up, especially if the dispute prolongs. Costs may also accrue from the outset of the process in the form of advance court fees. - Time consequences
Legal battles can stretch over multiple years. This means beneficiaries might face prolonged waits before they can access their inheritance, which can lead to financial strain. Additionally, one party, especially if better resourced, might strategically delay proceedings, making it a draining experience for others. Judges might also not expedite inheritance-related cases due to other pressing matters on their agendas. - Emotional consequences
Legal confrontations over inheritance can be emotionally draining. Not only do they strain family relationships, but they can sometimes result in long-lasting rifts among members. Moreover, the very nature of the legal process can compound emotional stress. Court hearings are open to the public, requiring family members to air their grievances and personal issues in a very public setting, which might not be the best environment for such intimate discussions.
How to prevent succession disputes?
Comprehensive estate planning
Every family has its share of unsaid truths or kept secrets. There’s often speculation about what others might have gained or benefitted from during a person’s lifetime.
Prioritising open dialogue, especially before someone passes away, has multiple advantages. Not only does it shed light on decisions made, but it also dispels longstanding misconceptions that may exist. It’s pivotal to lay out the facts and explain the reasons behind any decision.
Of course, initiating such conversations can be intricate, sensitive, and at times, emotionally charged. However, confronting these matters requires a bold step from the individual preparing for the inevitable, and a collaborative effort from all involved.
Comprehensive estate planning
Another vital strategy in sidestepping succession squabbles is detailed estate planning. We invite you to read the ressource page dedicated to estate planning.
How to prevent succession disputes?
Mediation in succession matters
Mediation is a method of amicably resolving disputes, led by one or more mediators whose role is to assist the parties in self-determination, which means helping them resolve the issue(s) themselves.
To achieve this, mediators set the stage for a confidential, safe dialogue between conflicting parties.
The mediators guide the parties to address all aspects of their disagreement and come up with innovative, tailored, and individualized solutions. Click here to learn more about mediation in estate matters.
Arbitration in estate matters
Arbitration involves entrusting the task of adjudicating a dispute to one or more private individuals (arbitrators) who will render a decision binding on the parties, much like a court judgment. Arbitration can occur when this dispute resolution method is stipulated in a contract (arbitration clause) or when all parties to a dispute agree to submit their disagreement to an arbitrator.
This conflict resolution method is known for its high degree of confidentiality (which distinguishes it from the judicial process) and its speed.
In arbitration, parties have the opportunity to select an arbitrator based on their areas of expertise/specialization, while maintaining more control over the course of the procedure. Consequently, parties ensure that a specialist in the relevant subject matter makes the decision that will settle their dispute.
Click here to learn more about arbitration in estate matters.
The role of party attorneys
Attorneys play a crucial role in mediation at all stages, including analyzing risks as the process unfolds. Moreover, an attorney’s participation in mediation allows them to understand the evolution of their client’s reasoning and what truly matters to them beyond purely legal analysis.
Succession disputes: avenues to explore
Exploring alternative resolution methods
It’s essential to remember that litigation is not the only option for resolving a succession dispute. Mediation and arbitration can provide a faster and less costly path to resolution. Each succession dispute is unique, even though the law is the same for everyone. The best approach will depend on your specific circumstances. Regardless of the path you choose, resources and professionals are available to assist you at every step of the process.
How an attorney can help in succession disputes
An attorney specializing in inheritance law can be a valuable ally in managing succession disputes. They can help you understand your rights and options, navigate the legal process, and advocate for your interests, whether you choose to resolve your dispute through litigation or an alternative dispute resolution method.
Why choose an attorney as a mediator or arbitrator?
An attorney acting as a mediator or arbitrator brings their legal expertise to the dispute resolution process. They understand the legal issues at stake and can assist the parties in exploring solutions that are both fair and compliant with the law.
