In today’s uncertain economy, more Americans, especially Millennials, are looking to future inheritances as a financial lifeline. But what happens when those expectations don’t match reality? A recent UK study suggests that younger adults are not only counting on their inheritance to make ends meet, they're also more willing to go to court over it.
While the study was based in the UK, the trends are highly relevant here in the U.S., where the rising cost of living, housing challenges, and financial instability are affecting younger generations in similar ways. It’s no surprise that many adult children view inheritance as part of their long-term financial plan. What is surprising, though, is just how many are prepared to dispute an inheritance if they feel left out or treated unfairly.
Inheritance Expectations Are Rising
According to the study, more than half of adults aged 25 to 35 are financially dependent, at least in part, on receiving an inheritance. They plan to use it to pay off mortgages, cover daily expenses, or simply improve their quality of life. And when that inheritance doesn’t come through, many feel stuck or even face going into debt.
Nearly 40% of those surveyed said they would consider contesting a will in court if they felt it didn’t reflect what they were promised or expected. That kind of conflict can delay probate, drain resources, and cause long-lasting rifts between family members.
What This Means for Families in the U.S.
Here in the United States, we’re seeing similar pressure points. Homeownership is out of reach for many young adults, student debt is high, and financial independence is harder to achieve. That makes inheritances seem like a safety net and emotions can run high when that net disappears.
The takeaway? Clear, comprehensive estate planning is no longer just a good idea, it’s essential.
Tips to Avoid Family Conflict Over Your Estate
If you’re creating or updating your estate plan, here are a few key ways to reduce the chance of future disputes:
- Be Transparent: Share your intentions with your loved ones. Conversations now can prevent courtroom battles later. When their expectations don’t match reality, issues can later appear.
- Update Your Documents: Make sure your Will, Trusts, and beneficiary designations reflect your current wishes and life circumstances.
- Choose a Neutral Trustee/Executor: If you’re concerned about fairness, consider appointing a professional fiduciary or other independent executor.
- Consider a Trust: Trusts can help avoid probate altogether and keep your estate private, an attractive option for most families. They can also include no-contest provisions to reduce the likelihood of unwarranted disputes or court actions being taken.
- Work With an Attorney: Don’t rely on generic online templates. A experienced estate planning attorney can help you navigate family dynamics and legal nuances.
As inheritances become more emotionally and financially significant, proactive estate planning is your best defense against future disputes. Whether you’re leaving assets or hoping to receive them, clarity and communication today can prevent courtrooms and conflict tomorrow.
If you haven’t created or recently reviewed your estate, now is the time to do so.
If you, a friend, or a loved one needs help establishing or updating an estate plan, we’re here to help. Contact our Intake Department at 760-448-2220 or visit us online at www.geigerlawoffice.com/contact.cfm. We proudly serve families across California from our offices in Carlsbad (San Diego County) and Laguna Niguel (Orange County).
