The Difference Between Estate Planning and Estate Litigation: What You Need to Know
An “estate” refers to everything an individual has accumulated and earned over his or her lifetime. Estate planning and estate litigation both deal with how these assets are managed and distributed. However, they are very different processes that serve unique purposes. Understanding the difference between estate planning and estate litigation can help you recognize your type of case and plan accordingly. Make sure to speak with an experienced St. Louis estate planning lawyer for legal guidance.
What Is Estate Planning?
Estate planning refers to an individual planning ahead to map out the fate of his or her estate (real property, bank accounts and savings, personal belongings, and debts) after he or she passes away or becomes incapacitated. The goal of estate planning is to ensure the smooth transition of an individual’s estate, assets or property to one or more other parties – ideally, without court involvement (e.g., probate or estate litigation).
Estate planning typically involves:
- Last will and testament
- One or multiple trusts
- A power of attorney
- Healthcare directives
- Beneficiary designations
- Tax planning
This collection of documents can determine how a person’s estate will be handled or passed down to beneficiaries after he or she dies. In this way, estate planning is a safeguard that helps surviving family members or beneficiaries distribute the owner’s assets, continue a family business, and honor the individual’s legacy without disputes or confusion.
What Is Estate Litigation?
Estate litigation is a legal process that may be necessary if something goes wrong while an individual’s estate is being administered or distributed. If any part of an individual’s estate becomes the subject of dispute, estate litigation may be required to resolve the legal issue. Estate litigation may involve a court case, or else the case may be resolved prior to court via settlement negotiations, mediation or arbitration.
Estate litigation may arise in the following circumstances:
- Someone is contesting the deceased person’s will.
- There are allegations of elder abuse or exploitation.
- A power of attorney is abusing his or her privileges.
- There is a dispute over how a trust is being managed or administered.
- There are conflicts between beneficiaries about asset distribution.
A solid estate plan can help prevent disputes from arising that will ultimately lead to estate litigation, where a judge or jury decides on a resolution. Preventing litigation is always the goal, as it can be costly, time-consuming, unpredictable and stressful for beneficiaries. If an individual dies without an estate plan or there are problems with the planning documents, however, litigation can be used to enforce the law and protect the rights of heirs.
Finding the Right Attorney for Your Unique Needs
Estate planning is all about preparation; it plans for certain events before they happen. Estate litigation, on the other hand, is a legal process that is triggered after these events have already taken place. Understanding this difference is key to achieving your desired goals.
If you have questions about estate planning or estate litigation in Missouri, contact TdD Attorneys at Law. Our lawyers specialize in all areas of estate law. We can review your case at no cost to help you identify which legal process is appropriate based on your circumstances. If we offer to represent you, we can help you protect your rights and interests with tailored legal services.