How to Prevent Your Family From an Estate Battle? Have an Estate Plan. Much of the increase in estate litigation is directly tied to the so-called “great wealth transfer” now underway, as assets move from Baby Boomers to Gen X, millennials and Gen Z. Estate planning gaps are the reason, according to the article “The great wealth transfer is giving Americans another reason to argue” from USA Today.
In simpler times, assets moved from one spouse to the surviving spouse and then to the children. However, today’s families are far more complex, and inheritance is no longer so simple. Making matters more challenging are retirement vehicles, including 401(k)s and IRAs, which have their own distribution rules.
By federal law, spouses automatically inherit 401(k)s. However, if an ex-spouse has not been removed from the beneficiary designation, they will inherit the funds. This will happen even if they waived their rights in a divorce settlement. Would a lawsuit recover the funds? Maybe—but there’s no guarantee. In some states, the estate may not sue the ex-spouse until after the distribution has taken place.
Furthermore, whoever inherits the 401(k) may legally change the beneficiaries, which means retirement savings could end up with the new spouse of an ex-spouse or their children.
Blended families face challenges, too. The law tends to favor biological heirs and married couples and often excludes stepchildren and unmarried partners. More than half of American families today either have been or will be part of a blended family. Stepchildren are not heirs unless they are legally adopted. Stepparents who want their stepchildren to inherit will need to name them in estate planning documents.
What’s the cost of all this acrimony? Just going through probate can take months and cost thousands. Add a dispute to the cost, and you’re looking at tens of thousands of dollars. The solution is far simpler: sit down with an experienced estate planning attorney and plan.
Update documents, including beneficiary designations, to reflect changes in your life. Marriage, divorce, death, or new members of the family need to be added or subtracted from your estate planning documents.
If family dynamics are good, start holding regular family meetings to discuss wealth transfer. If relationships are strained, ask your estate planning attorney for a recommendation. In some cases, having a social worker in the room can facilitate productive discussions. Sometimes, just meeting in an attorney’s office can create a less emotional atmosphere and help resolve sticky situations.
Regardless of the family situation, the parents (or grandparents) need an estate plan that reflects their wishes and achieves their wealth-transfer goals. Without an estate plan, the chances of disputes jump exponentially.
Reference: USA Today (March 8, 2026) “The great wealth transfer is giving Americans another reason to argue”