Taking family dynamics into consideration when estate planning can often be difficult. In some cases, a testator might be inclined to leave a token amount of money (such as $1) to demonstrate that an heir was intentionally omitted from their will, rather than forgotten. Although this might seem like a good idea to prevent a will contest and show your intent, there is no point in leaving a token amount.

Partially disinheriting an individual by leaving a small amount can complicate probate, invite disputes among beneficiaries, and increase the likelihood of costly litigation. Importantly, leaving a token amount does not deter someone from contesting your will.

Key Takeaways

• Partially disinheriting an heir by leaving a token amount can backfire by giving them rights as a formal beneficiary, complicating probate, and resulting in increased administrative burden for the personal representative.
• While you are not required to leave children or relatives an inheritance under Michigan law, partially disinheriting them by leaving a token amount in your will can make them question whether a mistake was made and potentially prompt them to challenge the will.
• Better alternatives to partial disinheritance in Michigan are including a formal disinheritance clause in your will, placing conditions upon a beneficiary’s bequest, or structuring spendthrift payouts, depending on your reasons for the disinheritance.

What are the Risks of Leaving a Token Bequest?

Under Michigan law, you are not required to leave your children or relatives an inheritance. Accordingly, there is no purpose in leaving a token bequest. Partially disinheriting an heir by leaving a token amount can make them wonder whether a mistake was made, rather than convey that you intentionally meant to exclude them. It can also result in the partially disinherited beneficiary complicating probate proceedings out of spite or in the hope of securing a larger share of the estate.

Specifically, some of the risks of leaving a token bequest are as follows:

• It gives the individual rights as a formal beneficiary: By leaving even just $1 in your will to someone, you are naming them a formal beneficiary of your estate. This gives them rights they would not otherwise have had. The personal representative would be required to notify them of all probate proceedings and provide them with detailed financial accountings. They would then have the information they need to scrutinize the estate administration and challenge the will or the executor’s actions.
• The individual has nothing to lose by contesting the will: Some wills contain a no-contest clause, which provides that a beneficiary who challenges the will forfeits their inheritance if the challenge is unsuccessful. If only a token amount was left, the heir would have nothing to lose by bringing a will contest in court.
• The individual may be motivated to disrupt estate proceedings: Rather than prevent litigation, a token amount can be an emotional trigger for the beneficiary, giving them motivation to disrupt estate proceedings and tie up the estate matter in court.
• An increased administrative burden would be placed on the personal representative: When a person is left a token amount, they must be treated like any other beneficiary of the estate. This includes providing formal notice about the probate case, keeping them reasonably informed about filings, as well as supplying an inventory of estate assets and ongoing accountings. As a beneficiary, they have the right to request information, challenge decisions, and object to accountings. The personal representative would be required to respond, address filings, and potentially appear in court for these matters.

Although leaving a token amount may feel like a clear expression of your intent, it often has the opposite effect in practice. Instead of preventing conflict, it can invite scrutiny, encourage litigation in probate court, and place additional burdens on the estate administration process. Careful drafting of the will, and including provisions with clear disinheritance language, are typically more effective tools to ensure your wishes are met.

Alternatives to Partial Disinheritance in Michigan

If you intend to disinherit someone from your will, there are better alternatives than leaving a token amount. For instance, you may consider including a formal disinheritance clause. Such a provision would specifically state that you acknowledge the individual’s relationship to you and are intentionally leaving them nothing. In such instances, no token amount would be required.

If your reason for the disinheritance is due to concerns that the heir may not be responsible enough to manage the assets, you might consider structuring spendthrift payouts. This would allow the funds to be distributed to the beneficiary in smaller increments, rather than one lump sum. You can also delay the age at which they would gain full control over the funds by creating a trust, or predicate the inheritance upon certain conditions. For example, depending upon the circumstances, you might require the beneficiary to complete their education, reach a certain age, maintain steady employment, or make positive life choices.

Lifetime gifting is another alternative to partial disinheritance in Michigan, which can come with many benefits. This allows you to distribute your estate during your lifetime so that you can see the impact of your financial support while maintaining control over how and when the money is distributed.

Contact an Experienced Michigan Estate Planning Attorney

If you are considering partial disinheritance in Michigan or placing conditions on an heir’s inheritance, it’s essential to have a skilled estate planning attorney who can help ensure your intentions are clearly documented and legally enforceable. The attorneys at Barron, Rosenberg, Mayoras & Mayoras are committed to helping clients draft wills, trusts, and comprehensive estate plans that provide them with the peace of mind they need that their wishes will be carried out. Schedule a consultation today by calling (248) 641-7070 in Michigan or (941) 222-2199 in Florida to learn how we can assist you. You can also use our simple online contact form.