 Family Feuds
The bloody feud between the Hatfields and the McCoys ended well over a century ago, spanned two decades and resulted in a dozen deaths in and around the
Appalachian area of eastern Kentucky. This famous inter-family feud had all of the elements of a Hollywood drama.
While the Hatfields and the McCoys may have settled their differences long ago, intra-family feuds are rather common these days following the death of a family member.
That fact was confirmed in a survey conducted by the AARP/Scudder Investment Program of Americans age 50 and over. According to the survey, 20 percent of the respondents cited problems
among surviving family members due to their inheritance, or lack thereof. More often than not, these feuds are over tangible personal property and family business interests.
Tangible Personal Property
The survey (which allowed for multiple responses) made an interesting discovery: Cash is the most prized asset over which family members fight, but tangible
personal property (e.g., heirlooms like antiques and jewelry) came in a close second. In fact, respondents reported that such property accounts for 47 percent of the feuds, followed by
personal residences at 43 percent, other real estate at 31 percent and other investments at 11 percent. Fortunately, the laws of most states provide a flexible solution for the specific
distribution of tangible personal property.
As part of your estate planning, find out whether your state authorizes a separate writing to be made on which you may list the specific items and who is to receive them. In
most instances, this writing may be handwritten, but it must be signed and incorporated by reference within the estate planning legal documents themselves. A little time spent
preparing this writing now as part of your overall planning can help avoid problems later.
Family Business Interests
Did you know 90 percent of all U.S. businesses are family-owned or family-controlled? They represent one-third of the elite Fortune 500, generate one-half of
the U.S. Gross National Product and pay half of the total wages earned in this country. However, a mere one-third survive their founders. Failure to plan adequate liquidity for federal
estate taxes can be blamed for part of this dismal survival record, but family feuds are another common culprit.
For example, will your surviving spouse continue the business or sell it? Who will buy it? Will any of your children take over and, if so, will they buy it or inherit it? How
will the inheritance of your other children be equalized? Are there any in-laws who could become out-laws, just to stir up trouble? In short, intra-family issues can cause a family
business to run aground. Coordinating personal estate planning with business succession planning can resolve these issues before they arise.
Not surprisingly, the survey also found that of the respondents reporting no conflicts over an inheritance, 63 percent said they had known what to expect ahead of time,
with 82 percent believing their inheritance was fair. As always, communication is key to family harmony.
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