When a dispute arises over the estate of a deceased relative, the state recognizes an alternative to traditional probate court administration: a family contract, or as it is referred to in the legal community, a family settlement agreement.
Because these are legal contracts and must meet certain requirements to be enforceable, you should consult with an experienced estate planning attorney before creating and signing a family settlement agreement. Reach out to an attorney at Begum Peláez-Prada PLLC to learn more about family contracts in San Antonio.
A family settlement agreement is a legally binding contract between heirs of a deceased person’s estate to resolve disagreements and disputes over the validity of a will, administration of the estate, and distribution of the estate’s assets. The agreement can establish who can claim under the estate and how the assets will be distributed. These agreements can be entered into before or even after a probate case has been filed.
To be legally enforceable, a family settlement agreement must satisfy three requirements:
A family settlement agreement does not have to be filed with the probate court and approved by the probate judge. Family contracts in San Antonio can be entered into without judicial oversight, but an attorney’s assistance is critical to ensure the agreement is legally valid and enforceable.
The most obvious benefit of a valid and enforceable family settlement agreement is the time and expense saved from avoiding a legal dispute over a will or probate administration.
Heirs may receive more under the family contract than they would have received through the administration of the probate estate because a family settlement agreement can determine the distribution of the estate assets, even if that means providing different types or amounts of assets to the heirs or including heirs left out of the deceased’s will. There may also be tax considerations that make a particular estate distribution scenario preferable to that outlined in the will. A lawyer in San Antonio can help you understand why a family contract may save you time and money.
Given the strict legal requirements for a family contract, it is critical to get it right and avoid the time and expense of a dispute about a will or probate estate. Understanding family contracts in San Antonio can be complicated, and an experienced lawyer can help all involved use a family contract to their benefit. If you are considering a family settlement agreement to resolve an anticipated or current dispute over the estate of a family member, the seasoned attorneys of Begum Peláez-Prada PLLC, headed by Sasha Begum, may be able to help. Call now to schedule an initial consultation.
