Estate planning is not just about deciding who gets what after you pass away. It is also about making sure your wishes are carried out in a fair and balanced way. One of the biggest challenges people face when putting together an estate plan is dealing with conflicts of interest. These conflicts can come from family dynamics, trustees, advisers, or even from the way property is owned. If they are not handled early, they can lead to costly disputes, strained relationships, and court involvement.
Understanding what conflicts look like, how they show up, and how to manage them can help families protect both their legacy and peace of mind.
What Is a Conflict of Interest in Estate Planning
A conflict of interest happens when someone involved in your estate has competing priorities that make it hard for them to act fairly. These situations often include:
- A trustee who is also a beneficiary and may put personal benefit ahead of duty
- Family disputes, especially when heirs disagree about how assets are divided
- Advisers who may not remain neutral and put their own financial interests first
Spotting these potential conflicts at the start helps keep an estate plan strong and avoids future legal challenges.
Conflicts in Planning for Married Couples
Planning for married couples can get complicated because each spouse may have different goals. For example, one spouse may want to provide more for children from a prior marriage, while the other spouse wants to make sure the surviving partner is fully cared for. Problems also come up when one spouse keeps financial information hidden from the other.
To address this, attorneys often use something called an Acknowledgment of Joint Representation. This document explains the rights of each spouse and how conflicts will be managed. If a serious conflict arises, rules like Model Rule 1.7 from the American Bar Association say the attorney may need to withdraw or get consent from both clients before continuing.
Blended families often face even more challenges. A spouse may want to leave assets directly to children, while the other prefers restrictions or trusts. Talking through these issues openly can reduce stress and limit the risk of legal battles later.
Property and Ownership Conflicts
Many people assume that everything they own will automatically pass to their spouse, but that is not always the case. Property laws such as elective shares and community property rules can change how assets are divided.
The way property is titled also plays a big role in estate planning. For instance, joint ownership, tenancy in common, or community property each create different outcomes. Attorneys often recommend reviewing ownership carefully and, in some cases, even seeking independent counsel so that each spouse fully understands their rights.
Power Dynamics and Client Capacity
Estate planning is not always balanced between spouses. One person may dominate decisions because they handle the finances, or the other may have health issues that make participation harder.
When there is a risk that one spouse or family member is being pressured, lawyers are guided by rules such as Model Rule 1.14, which focus on protecting vulnerable clients. In some cases, a fiduciary or guardian may need to step in to make sure decisions are fair and no one is being taken advantage of.
Red Flags: Warning Signs of Conflict
Sometimes conflicts are not obvious at first. Paying attention to warning signs can prevent problems from getting worse. Key questions to ask include:
- Are all family members being treated fairly?
- Is the trustee or adviser acting with complete impartiality?
- Have family members expressed concerns about how the estate plan is set up?
- Are past family disputes influencing decisions about inheritance?
These questions help uncover issues before they turn into lawsuits.
Trustee and Beneficiary Conflicts
Choosing the right trustee is one of the most important parts of estate planning. If a beneficiary also serves as trustee, there is a higher risk of favoritism or self-dealing. To reduce this, clients should consider setting clear distribution rules or naming an independent or professional trustee.
Professional trustees may charge fees and often require a certain level of assets, but they can provide impartial management. Meeting with them beforehand can help families feel confident in the choice. It is also smart to include options for trustee removal in case problems come up later.
Managing Co-Trustees and Family Dynamics
Some people choose more than one trustee, such as naming two or more children to share the role. While this might seem fair, it can create tension and disagreements. Co-trustees may argue over how decisions are made, especially if they are children from different marriages.
To avoid stalemates, the estate plan should set out clear guidelines and include tiebreaker provisions so decisions do not end up in court.
Transparency: Keeping Everyone on the Same Page
Lack of communication is one of the biggest causes of estate disputes. Families are less likely to argue when expectations are set early. Ways to promote transparency include:
- Holding family meetings to explain decisions
- Keeping detailed records of estate planning discussions
- Working with a neutral professional who can guide sensitive conversations
- Making sure wills and trust documents are clear and specific
Transparency builds trust and reduces the risk of painful surprises later on.
Choosing the Right Advisers
Estate planning often involves professionals such as attorneys, financial advisers, and trustees. Choosing advisers who stay impartial is key to avoiding bias. When interviewing advisers, questions to ask include:
- How do you deal with conflicts of interest?
- What steps do you take to remain neutral in disagreements?
- Do you have experience in estate planning and the right credentials?
- Can you share references from similar past clients?
Selecting advisers carefully helps ensure that decisions are focused on the client’s best interests.
Conflict Resolution: Steps to Settle Disputes
Even with careful planning, disputes may still happen. Having a plan for conflict resolution can save time and money while keeping relationships intact. Common approaches include:
- Mediation with a neutral third party
- Legal advice to make sure obligations are met
- Binding agreements such as no-contest clauses in a will
- Professional fiduciaries who act as independent trustees or executors
If conflicts cannot be resolved, courts may need to step in to enforce the estate plan.
Legal and Ethical Risks of Ignoring Conflicts
Conflicts that are ignored can lead to serious consequences. Some of the most common outcomes include:
- Heirs contesting a will due to claims of undue influence or bias
- Courts removing trustees who act in their own interests
- High litigation costs that reduce the estate’s value
Working with skilled professionals can help families avoid these risks and keep estate plans legally sound.
Future-Proofing an Estate Plan
Estate planning is not a one-time event. As families grow and change, plans need to be updated. Adding safeguards helps protect against future disputes. Best practices include:
- Using lifetime trusts to outline asset distribution in advance
- Reviewing and updating estate plans regularly
- Appointing a neutral trustee or executor
- Including no-contest clauses to discourage challenges
Updating an estate plan over time helps ensure that it continues to reflect current wishes and family circumstances.
Get Legal Help
Conflicts of interest can create real problems in estate planning, but they can be managed with clear planning, fair advisers, and open communication. By recognizing warning signs, choosing trustees carefully, and keeping family members informed, families can protect both their assets and relationships.
If you need help addressing conflicts in your estate plan, call Salines-Mondello at (910) 777-5734. Our estate planning lawyers can guide you through the process, review your current plan, and put safeguards in place so your wishes are honored and your family’s future is secure.