When most people think about estate planning, they envision passing down their assets to spouses, children, or other close relatives. However, life, relationships, and legacies are more complex than that.
There are many valid reasons to leave part or all of your estate to someone outside your family, like a dear friend, a charitable organization, or a trusted caregiver. However, under South Carolina’s intestacy laws, only family members are eligible to inherit part of your estate after your passing without a will.
If you want a non-family member to inherit any of your assets upon your death, they must be specifically named, making estate planning all the more important.
What Is Estate Planning?
Estate planning is the legal process of outlining how your assets should be managed and distributed after your death. Through legal instruments like wills and trusts, you can reduce confusion about who gets what, minimize the taxes that could reduce the value of your estate, and help ensure your wishes are honored after you pass.
Common Misconception: Estate Plans Are Only for Family
A common misconception about estate planning is that only immediate family members can inherit from you. However, South Carolina law gives you the freedom to leave your estate to anyone you choose.
To help ensure that happens, your intentions must be clearly documented. Without a valid estate plan, South Carolina intestacy laws kick in and, following probate, all your assets are divided between your spouse and children.
Estate planning with no heirs is also necessary. If you do not have a spouse or child, your estate passes to your closest living relative. If there are no surviving relatives, your estate goes to the state. Without an estate plan, a non-family member has no claim to your assets.
Reasons to Leave Your Estate To Non-Family Members
You can add any person or entity that is not a legal or biological family member to your estate plan. This includes:
- Friends and mentors
- Godchildren
- Stepchildren (if you married their parent and did not legally adopt them)
- Caretakers, nurses, assistants, or household staff
- Charity or non-profit organizations, schools, animal shelters, religious institutions, etc.
Many choose to leave part or all of their estate to non-family members for various reasons. Some of the most common reasons include:
- Close Relationships: Lifelong friends, loyal employees, and other non-family relationships often feel like a person’s chosen family.
- Better Control: Some people want to give part or all of their estate to those whom intestacy laws may not cover.
- Charitable Giving: Many people feel strongly connected to a cause, non-profit, or religious institution and want a legacy associated with that organization.
- No Immediate Family: In estate planning cases with no heirs (where someone is unmarried and child-free), non-family beneficiaries are often the natural choice.
- Estranged Family Relationships: Some people are not in contact with relatives or may prefer their assets to go to non-family relationships rather than distant relatives.
Legal Considerations
If you are leaving assets to non-family members, there are a few important legal steps to take.
An experienced estate planning attorney can help ensure all documents are valid and enforceable.
- Create a legally valid will or trust. In South Carolina, oral promises or informal letters will not hold up in probate court.
- Use specific, unambiguous language. Clearly identify your beneficiaries by full name and relationship, and detail what they will receive.
- Appoint an impartial executor or trustee. This helps avoid the appearance of favoritism and reduces the chance of disputes.
- Follow witness and notary requirements. These steps add legal weight to your documents and reduce the chance of a challenge.
Potential Challenges and How to Avoid Them
Leaving your estate to non-family members can result in conflict, especially with family members. Here’s how to reduce these risks:
- Communicate Your Intentions: If you are comfortable sharing the details of your estate plan, let your family know beforehand. This transparency can reduce resentment or surprise.
- Include a Letter of Non-Binding Guidance: Your lawyer can also help deliver a personal letter explaining your decisions. Although this is not legally binding, it can be emotionally valuable.
- Consider a No-Contest Clause: Also called an “in terrorem” clause, it discourages legal challenges by stating that anyone who contests the will may forfeit their inheritance.
- Use a Trust: Consider using a trust, which is harder to contest than wills and can provide more privacy and control over asset distribution.
Discussing these options with an attorney helps ensure your documents are airtight and your intentions are honored.
Updating Your Estate Plan
Even after you have made an estate plan, events in your life could alter your existing relationships and priorities. At Wiles Law Firm, we recommend reviewing your estate plan every three to five years or whenever there’s a significant life change.
Secure Your Legacy With a Sound Estate Plan
Your estate plan should reflect your wishes, especially if you want to leave part of your estate to non-family members. To help ensure those wishes are honored, you need a legally sound, carefully thought-out plan.
Let Wiles Law Firm help you secure your assets for the future. Schedule a free initial consultation today to discuss how we can help build your estate plan.