In our last post we discussed the problem of dying without a proper estate plan in place. The lack of an estate plan opens a person's estate up to fraud and protracted Bleak House-like litigation. Sometimes waiting to execute an estate plan until one reaches an advanced age is also a mistake. Executing a will at an advanced age makes will contests and accusations of undue influence much more likely.

Civil rights activist Rosa Parks had issues arising from her late execution of her final will and trust. Rosa Parks created her will and trust in 1998 when she was already into her 80's. When Rosa Parks died in 2005 at the age of 92, her nieces and nephews decided to challenge her will and lodged accusations of undue influence against the Parks' beneficiaries and the estate administrators.

The Parks litigation highlights the fact that estate planning should not just be a priority for the elderly. An estate plan is essential for anyone with substantial assets or children. Couples with young children or multiple children should consider an estate plan to help avoid infighting from the siblings. Those without children should consider executing an estate plan early on to avoid more distant relatives meddling with their wishes.

In the case of the Rosa Parks estate, her nieces and nephews were incensed that they were almost completely cut out of the royalties from the estate. They also objected to the fact that a substantial amount of Parks' assets would go to a charitable trust.

The litigation in this estate contest went on for almost seven years and climbed all the way up to the Michigan Supreme Court. This unnecessary will contest should serve as a warning for anyone who is procrastinating their estate planning duties.

Source: Forbes, "Rosa Parks' Final Wishes, Ignored for Years, Are Finally Restored," Danielle and Andy Mayoras, Jan. 6, 2012