The King Lear Problem and Avoiding a Legacy of Litigation
What does Shakespeare’s celebrated play, “King Lear,” have to do with estate and trust litigation? In some cases, everything.
The Story of King Lear
For those whose memory of “King Lear” from high school English class is a bit hazy, here is a brief synopsis. An old king decides it is time to retire and to divide his kingdom among his three daughters. Rather than divide the kingdom equally, he announces that the one who proves she loves him most will get the biggest share. Cordelia, the youngest daughter, who is the most devoted, declines to engage in a contest of flattery with her sisters Gonoril and Regan, who do so eagerly and falsely. Lear angrily disinherits Cordelia and divides the kingdom between Gonoril and Regan. Gonoril and Regan pursue their own interests and mistreat the old king, leading him to say, "How sharper than a serpent's tooth it is to have a thankless child." (Act 1, scene 4.) Lear realizes his foolishness too late and attempts to reconcile with Cordelia. War breaks out. Everybody dies.
Avoid Leaving a Legacy of Litigation
Where there is conflict or dysfunction in a family, litigation can be the greatest threat to the successful transfer of wealth to the next generation. No one intends to leave a legacy of litigation, yet it can easily happen, especially where the conflict or dysfunction is ignored, or the possibility of it is not considered. “King Lear” illustrates what can happen when the owners of wealth have no insight into their own motivations and are clueless as to the motivations of their children. They expect that their influence and power over their children will continue after they have transferred their wealth just as it had before.
Children usually expect to receive a share of their parents’ wealth equal to that of their siblings. Yet there can be good reasons for parents to make an unequal division. One child may have greater need. One child may have given up career or other opportunities to devote time to caregiving for their parents. One child may have already received significant support not provided to the others. When an expected inheritance is not received, however, the disappointed child may assume his or her sibling is to blame and will be motivated to pursue every avenue to right the perceived injustice. The result is often time-consuming and wealth-depleting litigation, and the litigation, rather than a beneficial transfer of wealth, becomes the parents’ legacy.
Communication Is the Key
There is no one-size-fits-all solution to the problem of dividing and transferring wealth. In our experience, good communication among parents and children is critical. It can also be hard. No one wants to think about death, and many people avoid talking about their money at all costs. Avoiding the discussion, however, sets the stage for surprise and bitter disappointment, both of which are drivers of estate and trust litigation.
Watson Bonander has experience representing both parents and children in the “King Lear” scenario. Due to the increasing longevity of parents, we are seeing more and more cases that begin before a parent's death, especially when a parent is weakened by illness and cognitive decline. The cases can continue after the parent's death. What begins as a fight over competing powers of attorney, or competing petitions for guardianship and conservatorship, can continue in the form of a will contest, a challenge to a trust or challenges to property transfers. Our strategy in representing clients in these matters is to try to bring the dispute to an end at the earliest possible stage and thereby preserve as much of our client's wealth or inheritance as possible.