The Myth of the $1.00 Disinheritance Clause

 The Myth of the $1.00 Disinheritance Clause 

Thinking about disinheriting a child or family member by awarding them $1.00 in your Will or Living Trust ? As an attorney of 30 years experience in California I can tell you to think again. The myth of the one dollar bequest may prove that the disinherited child was not forgotten, but it accomplishes nothing else, and in fact may very well only lead to a Will contest. Why? One dollar is not disincentive for an individual to refrain from challenging a Will. California law freely allows challenges to Wills. That does not mean the courts freely grant them, and indeed a petition filed to challenge a Will is meant with great resistance and scrutiny. So what is the best way to disinherit a child? The disinheritance of a child can be accomplished in one of two different ways. One option is a complete disinheritance clause, and that means less than a dollar, it means a zero. That clause is backed by specific language regarding the intent to disinherit the child. An individual’s Will or Trust could go even further and state the reasons for disinheriting the child, and all this is best accomplished with the guidance of an attorney. The second option to disinherit a child is very interesting – this option is not a complete disinheritance but rather awards that child a small portion of the estate. That portion is normally a monetary sum specific. This is often done with larger estates, for the reason that the larger the estate, the more likely a challenge is initiated against a trust or will. It becomes an interesting exercise in determining how much that amount should be – the goal is to put the “disinherited” individual in the position akin to being at a roulette wheel. Since the chances of a Will or Trust challenge succeeding are statistically small, the “disinherited” individual is forced into the position of either taking the amount allocated to them or risking it all, and “risking it all” also means having to “pay to play”, for the reason that law firms specializing in Will and Trust contests require payment of a large retainer fee up front. In summary, if you wish to disinherit an individual, do not try to do so by way of the antiquated $1.00 disinheritance clause.   

Would You Like a Free Consult With an Estate Planning Attorney?

If you wish to speak with an experienced estate planning lawyer, please contact us online or call us directly at (951) 587-3737. Ironclad Living Trusts is honored to serve clients throughout all of Southern California.