Disinheriting someone means not leaving them any assets in the estate plan when they otherwise would have inherited. For instance, you may have two adult children, and they assume that your estate will be split between them. However, you have the option to leave everything to just one person, effectively disinheriting the other.
In some cases, there are no alternatives, and it depends on why you want to disinherit them. Perhaps you and the individual had a falling out, and you have informed them that they will not receive any financial assets. You have no legal obligation to keep them in the estate plan if you do not want to do so.
However, there are cases where alternatives may make more sense. Let’s take a look at one example of how this could work.
Problematic spending habits
Maybe you have an heir who has always had frivolous spending habits. You’ve saved up enough money that they could use it to buy a home, start a business or even retire. But you know that if you leave them that inheritance, they’re probably just going to waste it in a few years. You could protect your assets by disinheriting them, simply deciding that they wouldn’t be a responsible recipient.
However, you could also consider putting the money in a trust. This way, the trustee either follows your instructions or uses their discretion to determine how the money should be spent. The trustee can ensure that the funds are used for education, housing costs or other responsible expenditures. This way, you still leave your heir an inheritance, but they don’t have the ability to frivolously waste the money.
Estate planning can be complex, but there are many different options, and it’s important to consider them all carefully.
