Family fights over a trust rarely start in the courtroom…they often start with small choices made in the plan. Careful drafting and clear communication cut down the chances of a blowup later, and that saves money and relationships.
At Vistas Law Group, our team of knowledgeable family law professionals has seen how disputes spark and how to stop them before they grow. This article walks you through common red flags in estate plans, so you can spot trouble early and protect what matters to you and your loved ones.
The High Cost of Trust Litigation
Trust litigation drains dollars that were meant for family, charities, or the next generation. Attorney’s fees, certain costs, and court filings can chip away at the estate, sometimes for months or years.
There is an emotional price, too. Grief mixed with accusations can reshape family ties in a way that never fully heals.
Careful planning on the front end reduces the risk of lawsuits. Clear documents, plain terms, and the right people in charge go a long way.
With that in mind, let’s look at problem spots we regularly see. You can use these as a checklist while you review your current plan or set up a new one.
Red Flags in Estate Planning to Avoid Litigation
Catching issues while you are healthy and calm avoids expensive battles later. If any point below sounds familiar, it is worth addressing it now while choices are still yours to make.
Unequal Asset Distribution Among Children
Leaving children different amounts can stir up resentment and lawsuits. One common claim is undue influence, which means pressure that overrode the signer’s free will and replaced it with someone else’s wishes.
The person challenging the plan usually has the first burden to show undue influence. That burden can shift if there was a confidential relationship, such as a child holding a power of attorney, or other suspicious circumstances.
If you plan an unequal split, talk with your children about why, or leave a separate letter that explains your goals. Clear communication reduces shock and helps everyone accept the plan.
Another helpful approach is to divide the residuary estate by percentages instead of gifting particular items. Asset values change, and percentage gifts adapt better than fixed-dollar or specific-asset bequests.
Some families use an in terrorem clause, also called a no-contest clause, where allowed. It can discourage weak challenges, but it is not a silver bullet and it must be paired with a real bequest for the clause to have bite.
Now, let’s talk about blended families because that is another common source of conflict.
Tension Between the Spouse and Children from a Prior Marriage
Surviving spouses and adult children can have different views of what is “fair.” Children may worry that a step-parent will inherit everything. A spouse may also have legal rights to part of the estate, especially in a community property state like California.
A Qualified Terminable Interest Property trust, known as a QTIP trust, often helps. The spouse can receive income and, if allowed, principal during life, and the children receive what is left after the spouse passes.
When building a QTIP or another blended-family plan, think through the following points carefully:
- Is there a prenuptial or postnuptial agreement that affects inheritances?
- Do any children rely on your financial support today, and for how long might that continue?
- Could the spouse realistically use all of the trust assets while living, and should a separate fund be created for the children?
- What happens if a child predeceases the spouse, and who receives that share?
- Who will serve as trustee, and does that person have the judgment and temperament for the job?
Spelling out terms now and choosing a steady trustee can calm nerves and lower the odds of a future fight.
Next up is the choice of fiduciaries, which can make or break the smooth handling of your plan.
Problematic Selection of Fiduciaries
Appointing two children as co-trustees can sound fair, yet it can stall every decision if they do not get along. Trouble also follows when a trustee and a beneficiary have a long-running feud.
Courts usually respect the person you chose to serve. Removal is uncommon and typically tied to serious problems like embezzlement, waste, or abuse of trust duties.
Think hard about fit, availability, and temperament. In many cases, a neutral choice, such as a trusted friend, a bank, or a professional trust company lowers the temperature and keeps administration on track.
Family dynamics get even more complicated when a closely held business is involved, so let’s address that separately.
Unclear Disposition of a Family Business
Family businesses bring pride, hard work, and strong opinions. One child might want to keep the company going, while others want a sale and a clean split of the proceeds.
Without clear instructions, even minor disagreements can turn into lawsuits. Write down who runs the day-to-day, who owns voting and nonvoting interests, and how a buyout or sale would work.
Ask yourself: Will the business continue or be sold at your death? Which family members, if any, will hold roles, pay, and authority? How will ownership be divided or redeemed? Then, create a written succession plan and share it with the family so no one is stunned later.
Documentation also matters. If records are shady or missing, beneficiaries lose confidence fast.
Shady or Missing Documentation
Trustees who manipulate, hide, or destroy papers breach their duties and invite litigation. Beneficiaries have a right to honest accounting and access to controlling documents.
Watch for these red flags and keep notes if you see them:
- Destroyed originals, missing pages, or sudden amendments that favor one person without any clear reason.
- Refusal to provide full copies of the trust, amendments, or account statements, along with shifting stories about distributions.
- Unfair distributions that conflict with earlier versions, newly discovered documents that appear out of nowhere, or accounting records that do not add up.
If something feels off, get advice quickly. Early action can stop damage and preserve your rights.
Some warning signs appear even earlier, right at the time the plan is created.
Red Flags During Estate Plan Creation
The planning process itself can reveal problems that later explode into lawsuits. Keep your antenna up for the following signs:
- Cognitive Impairment: The signer must be of sound mind at the time of signing. Doubts about capacity often trigger contests.
- Odd Changes: Large or unusual amendments, like sudden disinheritance or shifting major assets late in life, deserve extra scrutiny.
- Outside Influence: The person creating the will or trust should be the one driving the process, not a relative, caregiver, or friend who sets the meeting and answers all questions.
- Rushed Process: Estate planning needs time for reflection. Pressure to hurry the signing is a red flag.
- Joint Tenancy Push: Steering assets into joint ownership to “keep it simple” can backfire, creating beneficiary disputes and unintended transfers.
A calm, private meeting with the drafting attorney, clear notes, and proper witnesses help show your plan is truly yours.
When to Review and Update Your Estate Plan
Plans should be reviewed every three to five years, or sooner after big life changes. Fresh eyes catch outdated provisions, missing assets, or shifts in goals.
Common triggers include changes in family relationships, health, finances, taxes, or where you live. Another frequent gap appears in beneficiary designations that no longer match the rest of the plan, or a trust that was created but never funded.
| Trigger | What to Check | Risk if Ignored |
| Birth, adoption, marriage, divorce, or death | Update beneficiaries, guardians, and distribution terms | Disputes over shares or guardianship |
| New job, business sale, inheritance, or major purchase | Add assets to the trust and adjust percentages | Assets left outside the plan or uneven gifts |
| Health changes or diagnosis | Review agents under powers of attorney and care wishes | Confusion during incapacity and challenges over intent |
| Tax law changes | Revisit gifting, trust design, and titling | Higher taxes or missed planning options |
| Move to a new state or buy property in another state | Confirm documents meet local law and title new property properly | Multiple probates and conflicting rules |
| Old beneficiary designations | Align account designations with your trust and will | Assets bypass your plan and fuel disputes |
Keep a list of accounts and make sure the trust owns what the trust is meant to control. A short check-in every few years is far cheaper than a court battle later.
Ensure Your Estate Plan Reflects Your Wishes
If you see red flags in your plan, or you just want a second set of eyes, reach out to Vistas Law Group. Our team has helped California families for decades, and we draw on litigation experience to write cleaner, dispute-resistant plans. Call 951-307-9154 for our Inland Empire office or 213-745-8747 for our Los Angeles office, or visit our website to get started.
We welcome your questions, and we are happy to explain the options in plain language. With more than 300 years of combined experience across our team, we focus on clear documents, steady fiduciaries, and family communication that defuses conflict. Feel free to call us, and let’s put a plan in place that works on paper and in real life.