When someone prepares an estate plan, they have the right to distribute property as they choose. Parents often assume they can leave unequal shares to children or favor certain beneficiaries. While unequal inheritances are legal, they often create resentment and disputes. In some cases, they lead to claims that fiduciaries—executors or trustees—breached their duties.
Unequal inheritances can strain family relationships and spark costly litigation. Understanding how these disputes arise, and the fiduciary duties involved, helps families prepare for and avoid conflict.
What Is a Fiduciary Duty?
In estate administration, fiduciary duty is the highest duty recognized by law. Executors, administrators, and trustees must act in the best interests of the estate and its beneficiaries. This means:
- Acting honestly and with loyalty
- Managing assets prudently
- Following the terms of the will or trust
- Treating beneficiaries impartially
- Avoiding conflicts of interest
When fiduciaries fail in these duties, beneficiaries may bring legal claims against them. Unequal inheritances often trigger suspicions that fiduciaries acted unfairly or improperly.
Why Unequal Inheritances Happen
There are many reasons why a person might leave unequal inheritances. Common examples include:
- Financial disparities: One child may already be financially secure, while another may need more help.
- Past gifts: A parent may have supported one child during life and adjust the estate plan accordingly.
- Special needs: A child with disabilities may require more resources.
- Estranged relationships: Parents may leave smaller shares to children with whom they have little contact.
- Second marriages: Blended families often result in uneven distributions between biological children and stepchildren.
While these choices may make sense to the testator, they often come as a shock to beneficiaries.
How Unequal Inheritances Create Disputes
Suspicion of Undue Influence
When one heir receives a larger share, others may suspect the fiduciary manipulated the testator. Allegations of undue influence are common in cases where one child was more involved in the parent’s care or finances.
Challenges to Capacity
Beneficiaries who receive less may argue that the testator lacked mental capacity. They may claim the estate plan was invalid, leading to litigation over whether the testator understood the decisions they made.
Claims of Breach of Duty
Executors and trustees must carry out the estate plan as written. But if beneficiaries believe the fiduciary favored certain heirs or acted unfairly, they may file breach of duty claims. Examples include:
- Delaying distributions for some heirs but not others
- Providing incomplete accountings
- Favoring personal interests over the estate’s interests
Family Division
Even if litigation is avoided, unequal inheritances often leave long-lasting resentment among siblings. What the testator viewed as fair may appear deeply unfair to those left behind.
Fiduciary Duty and Impartiality
One of the key fiduciary duties is impartiality. Even if a will or trust provides unequal shares, executors and trustees must treat all beneficiaries fairly in carrying out the plan. This includes:
- Providing equal access to information
- Making distributions according to the same timeline
- Avoiding favoritism in asset management
- Following the exact terms of the documents
Failure to act impartially can expose fiduciaries to claims of misconduct, even if the unequal inheritance was intentional.
Legal Standards in New Jersey
In New Jersey, courts take fiduciary duty seriously. Executors and trustees are expected to follow both statutory requirements and the terms of estate documents. Beneficiaries who believe fiduciaries breached these duties may petition the probate court for relief. Remedies can include:
- Removal of the fiduciary
- Surcharges to reimburse the estate for losses
- Orders requiring accountings or corrective actions
While courts respect a testator’s right to leave unequal inheritances, they also enforce the requirement that fiduciaries administer estates fairly and in good faith.
Preventing Fiduciary Duty Claims
Communicate Clearly
One of the best ways to prevent disputes is for the testator to communicate their intentions. Explaining reasons for unequal inheritances during life reduces suspicion later.
Document Decisions
Estate planning attorneys can help clients document the reasons for unequal distributions. Letters of intent or professional notes may deter claims of undue influence.
Choose the Right Fiduciary
Testators should select executors or trustees who are impartial and capable of handling disputes. Naming a neutral professional, rather than a family member, may help prevent conflict.
Update the Plan Regularly
Outdated wills or trusts often lead to disputes. Regular updates ensure that estate plans reflect current wishes and circumstances.
Consider Alternatives
If unequal inheritances are likely to cause problems, alternatives like lifetime gifts, trusts with clear terms, or insurance policies may reduce conflict.
What Beneficiaries Should Do
If beneficiaries believe an executor or trustee has breached fiduciary duty, they can take steps to protect their rights:
- Request formal accountings of estate activity
- Communicate concerns in writing to the fiduciary
- Seek mediation before litigation
- Petition the court if misconduct continues
Acting quickly is important, as delays can make it harder to recover assets or correct mismanagement.
Why Legal Guidance Matters
Disputes over unequal inheritances are often emotionally charged. Beneficiaries may feel betrayed, while fiduciaries may feel accused of misconduct when they are simply following instructions. These cases require both sensitivity and legal expertise.
An experienced estate attorney can:
- Explain the rights of beneficiaries and duties of fiduciaries
- Represent clients in fiduciary duty claims
- Help prevent disputes through careful estate planning
- Provide strategies for communication and transparency
The Knee Law Firm has decades of experience helping families with estate planning, administration, and litigation. Our attorneys can guide both fiduciaries and beneficiaries through disputes over unequal inheritances, ensuring compliance with New Jersey law and protecting family legacies.