When a parent dies, their children are faced with complex emotional challenges. The last thing siblings need is an estate battle during the grieving process. Unfortunately, disputes about a parent’s estate are quite common when a parent leaves multiple children behind. Problems can arise, such as conflicts due to disagreements over asset distribution, emotional strain, legal complexities, and unequal contributions.
You don’t have to navigate estate battle on your own. If you find yourself in a legal dispute with one or more siblings, contact the team at Onyx Law Group for advice. Our estate lawyers offer valuable assistance and legal guidance on safeguarding your rightful inheritance and resolving problems with siblings settling estates.
In this blog, we’ll discuss common problems that arise during the legal process of settling a parent’s estate, strategies to manage or prevent these issues, and the importance of proper planning and communication.
Common Inheritance Disputes with Family Members
Fights about money and estate assets are very common among siblings after a parent’s death. These fights can cause lasting harm to family relationships and result in lengthy legal challenges and expensive legal fees.
Disagreements Over Asset Distribution
Siblings may have differing views on asset distributions, particularly when their parent’s will is vague or provides for uneven asset distribution. Siblings often argue over sentimental items, perceived unequal inheritance, and unequal contributions (financial or otherwise).
One sibling’s perspective on their parent’s true wishes or rightful inheritance may be entirely at odds with another sibling’s perspective. A sibling can bring legal action and challenge a will when such disagreements arise.
Property Disputes: Sell or Keep the Family House?
Many disagreements can arise when it comes to an inherited home, such as whether a deceased parent’s home should be sold, or siblings should keep the family home for sentimental reasons. Another problem could be a sibling wanting to force a sale of a deceased parent’s home where another sibling lives.
There are many ways to resolve inherited house disputes. For example, the sibling wishing to keep the family home can have the property appraised and offer to buy out their other siblings at current market value. Forced sale may also be an option if a buyout or other resolution is not possible. Keeping the property to generate rental income is another option.
Executor Conflicts
The executor or administrator is the personal representative of the estate after your parent dies. The personal representative has a lot of responsibilities, including managing and distributing assets of the estate and communicating with the estate beneficiaries.
If your parent died without a will, you and your siblings may disagree over who should apply to be appointed to administer your parent’s estate. If your parent died with a will that appointed an executor, you and your siblings may disagree with the executor’s decisions. That is particularly true if only one sibling is appointed as the executor, or if two siblings are appointed and can’t agree with each other.
Resentment and feelings of power imbalance or mistrust are common when only one sibling or two siblings jointly are appointed as executor to the exclusion of other siblings. A mediator or skilled estate lawyer can help resolve disputes among executors and beneficiaries. Court proceedings to challenge or remove an executor may be necessary if there are serious problems.
Sentimental Attachment to Certain Assets
Emotional attachment to items like family heirlooms, the family home, or other personal belongings can cause tension. There is often only one of the item in question, making it impossible to divide. It can also be difficult to assign monetary value to sentimental property.
Ideally, your parent will have provided their wishes for distribution of sentimental items, either in their will or in a memorandum. If not, there are several strategies to resolve sibling disputes, such as involving a mediator or neutral third party, selling the item and dividing the proceeds, or having siblings take turns choosing items they want to keep.
Unequal Financial Contributions
Unequal contribution to the care of a parent, a family home, or a family business can create expectations for a larger inheritance. The parent’s will may not meet those expectations.
If you or your siblings believe the will is unfair, court proceedings can be brought. One type of legal challenge is known as a wills variation claim. If the court agrees that the will is unfair (for example, because it failed to recognize unequal contributions or live up to certain promises), the court can vary asset distributions in the will. Another option is an equitable claim based on unjust enrichment.
Emotional Conflicts and Family Dynamics
Sometimes, the root of the problem has nothing to do with financial assets. Family dynamics and sibling rivalries are often the real reason for an inheritance dispute. Grief can amplify underlying family tensions.
In other cases, unequal financial need is the root of the problem. One or more siblings may have greater financial need than the others, due to debts, disability, addiction, family demands, etc. A financially disadvantaged sibling may resent what their siblings inherit and attempt to raise disputes or delay the legal process of settling the estate.
Effort should be made to identify and address the root causes of sibling disputes. A neutral mediator, counsellor, and/or empathetic lawyer may be able to smooth emotional conflicts and calm strained family dynamics so that the estate can be settled.
Legal and Financial Complications
Legal and financial hurdles can cause delays and frustration. Common issues include valuation disputes, outstanding debts (property taxes, mortgage payments, estate taxes), capital gains on inherited property, and tax implications.
There may also be problems with legal title that can complicate matters (e.g., parent transferred title to property into joint ownership with only one sibling during their lifetime). Many issues can be resolved with the right advice and legal guidance. In some cases, court proceedings will be needed to challenge “gifts” of property or assets made during a parent’s lifetime.
How to Handle Disputes with Siblings When Settling Estates?
Should an estate battle arise, there are steps you can take to manage and reduce conflict.
- Clear and Early Communication: Ideally, any potential issues will be discussed and resolved in your parent’s estate plan before your parent passes away. If the issue arises after your parent’s death, siblings should communicate openly and honestly about their expectations and concerns from the outset.
- Hiring an Experienced Estate Attorney: It’s important to be proactive. An experienced estate planning lawyer can help your parent get their affairs in order and properly document your parent’s final wishes. If your parent did not have a comprehensive estate plan in place, or if a dispute arises in settling the estate, an estate attorney can advise you on your rights and options, explain the applicable laws, and devise a strategy for resolving the dispute. Contact our skilled attorneys at Onyx Law Group for any questions you might have regarding your parent’s estate.
- Explore Mediation: Consider getting an impartial third party involved to keep emotions in check and ensure fair negotiations. A mediator or estate planning professional can guide you through mediation or other alternative dispute resolution methods (e.g., direct negotiation, arbitration, med-arb, judicial settlement conference). Alternative dispute resolution options tend to be quicker, less expensive, and better at preserving family relationships than the traditional court process.
How to Divide Inherited Property Between Siblings?
The answer to how inherited property is split when a dispute arises depends on a number of factors. Here are key considerations when it comes to how to divide inherited property between siblings:
- Review the will or trust. Your parent’s will or trust should state their wishes and serve as a roadmap regarding asset distribution.
- Communicate openly. Be open and honest with your siblings and the personal representative of the estate. Share your concerns, wishes, and intentions and be willing to hear your siblings when they share their perspective.
- Get the right advice. When issues arise, get proper advice, whether it is a legal issue, tax issue, etc. so that you are making informed decisions.
- Determine the value of the inherited property. It is important to have property appraised. The fair market value of a piece of property must be known before you and your siblings can decide how to divide the property.
- Decide on ownership options. Once you and your siblings know the market value of inherited property, you can discuss options such as selling and dividing the sale proceeds, keeping the property (as tenants in common or joint ownership), or if not owned by siblings jointly, one or more siblings can buy out the other sibling(s).
- Hire a mediator. In addition to getting the right advice (as discussed above), you may also need some more guidance from a neutral third party. A trained mediator can help work through issues and find middle ground to resolve disputes over an inherited property split.
Can Siblings Sue Over Inheritance in British Columbia?
Yes, siblings can sue over inheritance disputes. There are several legal grounds for challenging a parent’s will (discussed in the next section). A sibling can also bring court proceedings to vary their parent’s will if they believe it is unfair (e.g., because the estate is not divided equally, or due to outright disinheritance), they can initiate court proceedings to challenge property transfers or gifts made during their parent’s lifetime, or they can sue for abuse of a Power of Attorney or theft from the parent’s estate.
Legal Challenges Siblings Face When Dividing Inherited Assets
In addition to a wills variation claim, there are certain grounds that form the basis of legal disputes among siblings settling estates, including:
- Disputes Over Will Validity. A parent’s will can be invalidated if it was not properly executed and witnessed.
- Undue Influence. A will can be invalidated if there is evidence that the parent was overpowered by undue influence, threats, or abusive tactics of a sibling to such a degree that the will no longer reflects the parent’s true intentions.
- Fraud or Forgery. A will that is fake, forged, or created under fraudulent circumstances can be challenged in court.
- Legal Interpretation Issues. Court proceedings can be brought to resolve ambiguities or vagueness in a will that lead to different interpretations of how assets should be distributed (e.g., the list of beneficiaries or assets is unclear). The court’s interpretation of the will resolves the ambiguity.
- Conflicting Wills. Court proceedings will be necessary in situations where multiple wills exist and there is confusion about which document is legally valid.
- Undivided Property. Disputes may arise when siblings inherit property that is not easily divisible, leading to conflicts over how to manage or sell the asset.
- Valuation Disputes. Differing opinions on the value of estate assets can result in contention, particularly when siblings believe that certain items or properties are undervalued or overvalued.
- Estate Taxes. Confusion regarding the allocation of estate taxes can lead to disagreements about how much each sibling is responsible for, especially if the estate’s tax liability is significant.
- Capital Gains. If inherited property appreciates in value, siblings may face disputes over capital gains taxes, especially if one sibling wishes to sell while others prefer to hold onto the property.
How to Protect Your Inheritance from Siblings?
There are ways to manage conflict, protect your inheritance, and avoid legal challenges. If there are red flags or warning signs when your parent is still alive, your parent can work with an estate planning lawyer to protect assets, smooth tensions, and ensure their final wishes are clear. There are many estate planning options. For example, your parent can:
- Prepare and execute a clear estate plan, including a will;
- Set up trusts to manage property and prevent disputes;
- Prepare legal documents evidencing their intention with respect to their estate (e.g., carefully clarifying reasons why they didn’t divide their estate equally among their children); and/or
- Appoint neutral friends or relatives or a professional trustee to act as their Power of Attorney during their life or as executor during the probate process.
If the conflict arises after your parent’s death, calm communication and clear boundaries are essential. A frank discussion among siblings about expectations and concerns can go a long way to eliminating confusion, mending hurt feelings, and easing tensions.
Need Help With Inheritance Disputes?
Dealing with disputes among siblings one-on-one may not be possible or preferable, as not everyone is willing or able to act reasonably. In those situations, legal help is strongly recommended. An experienced estate lawyer can facilitate constructive conversations among siblings and use negotiation and mediation techniques to resolve inheritance conflicts. Your estate lawyer can also help you understand your inheritance rights and explain the legal remedies available should court proceedings be necessary.
The British Columbia estate lawyers at Onyx Law Group work hard to reach a fair and amicable resolution of legal matters while preserving family relationships as much as possible. We welcome you to contact us today so we can help you find the best way forward.