Sunday, October 26

Mediators : give this to your will drafting clients for future income stream

Leaving More than Money: Mediation Clauses in Estate Planning Documents by Profs Lela Love and Stewart Sterk of Yeshiva University - Cardozo School of Law

For testators who are primarily motivated by the desire to exercise “dead hand” control over the distribution of their estate, mediation clauses are not advisable.

However, for testators whose interests include cost saving or maximum distribution of their assets to beneficiaries, privacy of family matters, and promotion of family relationships, drafters should consider including a mediation provision in the will and other estate planning documents.

Unlike the no contest clause that may further embitter unhappy beneficiaries who are put in a gambler’s dilemma by the choices the clause gives them, a mediation provision has the possibility of an outcome acceptable to all parties, coupled with the benefit of providing positive direction about family values, collaboration and the possibility for family growth and change.

The no contest clause is a dispute avoidance device, while the mediation clause is a dispute engagement device—offering what may be not only dispute resolution, but also clause offers a testator one last shot at being a positive family leader."[read more]

No comments: