When a person passes away, it is not uncommon for heirs, beneficiaries, family members, or other interested parties to become suspicious of the decedent’s estate planning decisions. In some cases, a deceased person may have been subject to undue influence just before their passing—an act that can invalidate the will and any other affected estate planning documents. But what is undue influence? And how can you prove that your loved one was unduly influenced? Let's find out.

Understanding Undue Influence

In the realm of estate planning, undue influence refers to when someone manipulates another person into making decisions they would not normally make. This manipulation can be emotional, psychological, physical, or financial. It often occurs in instances where an elderly person or someone who is not mentally sound is taken advantage of by another party who wishes to gain control over their estate. In many cases, the victim may not even understand the implications of the decision they are making until after they have signed the document. If the person is manipulated, forced, or tricked into adding or removing certain provisions or beneficiaries, challenging the document could lead to the whole thing being invalidated by the court.

It is important to understand that the law allows for a spouse, family members, and loved ones to offer their input when a person is creating their estate plan. This is not usually considered undue influence, provided that such input takes the form of reasonable opinions, conversations, and calculations. If, however, a caretaker or a single family member cuts the person off from other family and friends or threatens to withhold care, undue influence could be an issue.

It can be incredibly challenging to plan for a time when you are not around to care for your loved ones. However, facing this reality by creating an estate plan is one of the most selfless actions you can take. This is especially true if you have a child, sibling, or another close loved one who has a serious disability. If you have been responsible for caring for a loved one who cannot care for himself or herself, you may want to find a way of providing for him or her after you pass away. One way to do just this is through an estate planning tool called a special needs trust, also known as a supplemental needs trust.

Planning for the Care of a Loved One with Special Needs

A special needs trust or supplemental needs trust is an estate planning instrument that can be critically important to individuals who provide care for a disabled loved one. This instrument works by allowing the individual to place funds in the trust, which can then be used for the future care of their disabled loved one. A special needs trust allows you to put aside money for your loved one without affecting the disabled person’s eligibility for government assistance programs. Special needs trusts can be funded through gifts and inheritances or a lump-sum settlement. Without a special needs trust, money left to your loved one could potentially disqualify him or her from certain government aid programs.

Leaving Money to a Loved One Could Increase His or Her Available Assets Too Much

A substantial portion of government-funded aid is distributed to individuals under a certain income level. For example, Medicaid, Supplemental Security Income, and housing subsidies all have income criteria that a person must meet in order to qualify for financial assistance. If you leave money to your disabled loved one without the appropriate estate planning instrument, it could be counted toward their assets. If the funds are substantial, this money could bump your loved one’s income up to a level that makes them ineligible for programs with income or asset limits.

A power of attorney (POA) is a document that gives a person the legal authority to make decisions for you. A durable financial power of attorney is an important part of a comprehensive estate plan. With a durable POA in place, you can ensure that someone you trust will be able to manage your finances if you become incapacitated.

What Is a Durable Financial Power of Attorney?

A financial power of attorney gives another person the authority to manage your finances. The person you designate as your agent may have the power to address multiple financial issues, including paying your bills, depositing or withdrawing money from your accounts, and buying or selling property on your behalf. When a POA is "durable," this means that it will remain in effect if you are ever incapacitated, which may include any situations where you cannot make decisions for yourself or express your wishes to others.

Why You Might Need a Durable Financial Power of Attorney

There are any number of reasons why you might need to appoint someone to manage your finances if you cannot do so on your own. Perhaps you are going through cancer treatment and want to be sure your bills are paid on time, including in cases where you may be too ill to handle financial issues. If you are at an advanced age, you may want to make sure your financial affairs will be handled correctly, that your medical care will be paid for, and that your ongoing needs will be met throughout the rest of your lifetime. Whatever the reason, a durable financial POA gives you peace of mind knowing that your finances are in good hands should something happen to you.

Estate planning most commonly considers the property left behind by a recently deceased individual and how it should be disposed of, in addition to potential end-of-life situations and the care desired by the planner in the event of future incapacity. These topics can be challenging to contemplate, as they force the planner to contemplate their own mortality. Often overlooked is planning of a practical nature for how the family is to proceed in the immediate aftermath of the estate planner’s passing.

In California, there are legal mechanisms by which a person can effectively make arrangements for their own funeral services and the disposition of their remains. These topics can be even more difficult to contemplate, let alone establish concrete plans for. However, planning for funerary arrangements can not only keep important decisions in your hands but also provide significant benefits to your surviving loved ones. If you are able, it is prudent to make such arrangements during your own lifetime.

What is an Irrevocable Life Insurance Trust?

An irrevocable life insurance trust (ILIT) is a commonly overlooked and underutilized tool for individuals to ensure that funds adequate to cover funerary expenses will be available to their loved ones. An ILIT is a trust, but one that is funded posthumously by the proceeds of a life insurance policy. Upon your death, benefits paid out by your life insurance company can be placed directly in this trust. Importantly, ILIT funds may not be subject to certain tax burdens or other liabilities.

Being forgotten is a common fear associated with death. Everyone wants to be remembered fondly long after they have passed away. Aside from the immediate financial benefits, a desire to be remembered can be a driving factor for those who have flocked to Los Angeles seeking stardom. Luckily, you do not need to make it as an actor or musician to leave a lasting legacy. You can use your estate plan to continue benefiting not only your descendants for generations to come, but the community as a whole. Charitable giving is a noble way to continue serving your community long after you have gone. Business owners may have additional opportunities. If you are interested in leaving your mark on your loved ones and Los Angeles alike, you should speak to an attorney about how you too can build a legacy using your estate plan.

Your Estate Plan Can Help You Leave a Lasting Legacy

No matter who you are in life, you can do real good in the world after death. Some ways that you can leave a lasting legacy in your estate plan include:

• Gift-giving occasions - You may not be around for some important events in your loved ones’ lives, like perhaps a grandchild’s wedding. Using either a will or a trust, there may be ways to earmark funds so that your presence will be felt at these important events.
• Charitable giving - You have multiple options for posthumous charitable giving. You may of course leave a lump sum to a specific charity. Or, you could create a charitable trust that supports a particular cause you are passionate about. You can then authorize your trustee to make reasonable distributions as needed.
• Memorial scholarships - A great way to help deserving individuals in your community is to establish a memorial scholarship that can help disadvantaged students obtain higher education.
• Business planning - When you have done the sheer amount of hard work it takes to build a business from the ground up, you want it to still be there when your great-great-grandchild is old enough to take it over. Planning for your company’s continued success can help keep your family financially secure for generations to come.
• Donating big items - Charitable organizations and community efforts are always in need of big-ticket items, like cars and furniture. Your belongings can be enjoyed by and used to serve members of your community in need as long as the items endure.

As you can see, it is possible to create an enduring name for yourself with a bit of careful estate planning.