Monthly Archives: September 2026

Few Estate Planning topics create more emotion than the idea of disinheriting a child. Many people assume that children have a legal right to receive something from a parent’s Estate, no matter what the parent’s Will or Trust says. That belief shows up in family conversations, online comments, and dramatic headlines suggesting that a child cannot really be written out of a parent’s plan.

That misunderstanding can create real conflict after death, especially when the estate plan says one thing and family members expected something else.

What many people miss is that those default inheritance rules usually apply only when the parent has not left valid instructions for the property. Every state has intestacy laws that decide who receives property when someone dies without a will, trust, beneficiary designation, or other instruction that controls the asset. Those laws may give children a share, but they do not override a properly drafted estate plan.

Proper estate planning gives a parent the ability to decide who receives the parent’s property and on what terms. A will or revocable trust may leave assets equally among children, leave one child more than another, hold a child’s share in trust, benefit grandchildren, include charities, or leave one or more children nothing. When the parent signs valid documents, keeps beneficiary designations consistent, and follows state law, the parent’s directions generally control.

This is also where the difference between an expected inheritance and an actual beneficiary designation matters. A child may believe he or she would have inherited if there had been no plan. But once a parent signs a valid will, trust, or beneficiary form, the question becomes who the parent actually named to receive the property. A child can be the person who would have inherited under the state’s default rules and still receive nothing if the parent’s documents direct the property somewhere else.

It also matters which document controls the asset. A will usually controls assets that pass through probate. A trust controls assets titled in the name of the trust or otherwise directed to the trust. Life insurance, retirement accounts, payable-on-death accounts, transfer-on-death accounts, and jointly owned property often pass outside the will according to the account form or title. A parent may remove a child from the will but forget to update an old beneficiary designation, creating a result the parent did not intend.

The documents should make the parent’s decision clear. Some estate plans name the child and state that the child receives no share. Others give the child a smaller share, a specific dollar amount, or a trust share controlled by a trustee. The right approach depends on the family, the assets, and the state law involved. The plan should show that the parent made the decision intentionally.

The reasons for that decision may vary. The parent may have already made substantial lifetime gifts to one child. A child may have creditor problems, substance abuse concerns, a difficult marriage, or public benefits that an outright inheritance could disrupt. In some cases, a trust may allow the parent to provide support without giving the child a large outright distribution.

State law still matters, but Louisiana is the exception, not the rule. Unlike most states, Louisiana limits a parent’s ability to fully disinherit certain children in limited circumstances. A few other states also protect children in narrower situations, but those exceptions do not create a general rule that adult children have a right to inherit from a parent’s estate.

The plan should make the parent’s intent easy to see. A parent who wants children to inherit equally should say so and make sure the will, trust, beneficiary designations, and asset titles match that plan. A parent who wants unequal shares should explain the distribution clearly in the documents. A parent who does not want to provide for an adult child should address that decision directly, not by accident or silence.

Adult children may have expectations, but expectations are not the same as legal rights. In most states, a properly drafted estate plan allows a parent to decide who receives the parent’s property and who does not. If your plan leaves children unequally, excludes a child, or relies on old beneficiary designations, it may be time to review the documents with my office. Clear documents make that decision easier to honor, harder to dispute, and far less likely to be misunderstood after death.

Winning the lottery changes a person’s financial life overnight. Before the prize is claimed, however, the winner needs to consider how that sudden wealth affects taxes, privacy, family arrangements, gifting, and the Estate Plan.

The first step before claiming the prize is to get professional advice. Enlisting the services of a me as your attorney CPA and financial advisor can help the winner understand the claim process, payout options, tax consequences, and privacy rules. Lottery tickets have claim deadlines, so there is a limit to how long a winner can wait, but there is usually good reason to understand the available options before filing the claim.

Ownership of the ticket should also be clear. A ticket may have been purchased by one person with his or her own money, or it may have been bought for a family or group that regularly shares the cost. If more than one person has an ownership interest, that arrangement should be documented before the prize is claimed.

This can matter more than family harmony. If one person claims the entire prize and later gives portions to others, those transfers may be treated differently for tax purposes than if the other participants already owned their shares of the winning ticket. A written agreement can identify the participants, their respective percentages, and how the winnings will be divided.

Depending on the circumstances and state lottery rules, a Trust, LLC, partnership, or other structure may also be worth considering. If an entity will be used, the governing documents should reflect the actual agreement among the participants. They should also address what happens if one participant dies, becomes incapacitated, divorces, or is unable to participate before all proceeds are received.

The payout choice is another important decision that has Federal, and potentially state, income tax consequences. Most large prizes involve a choice between a lump-sum payment and an annuity. A lump sum gives the winner immediate control over the proceeds and may provide greater flexibility for investing, gifting, or other planning. It also means the winner must begin managing a substantial amount of wealth at once.

An annuity spreads the payments over a period of years and may provide more structure. It does not, however, eliminate the Estate Planning issues. The winner should understand what happens to unpaid installments at death, who can manage the payments during incapacity, and how the payment stream will be handled under the Estate Plan.

Taxes should be addressed before the winner starts spending or making gifts. Lottery winnings are taxable income, and the amount withheld from the prize may not equal the winner’s final tax liability. State taxes may apply as well, depending on where the ticket was purchased and where the winner lives.

That makes it important to determine how much should be set aside before the winner starts paying off mortgages, buying property, or making large gifts. The amount deposited into an account may look substantial, but it should not automatically be treated as entirely available for spending.

Family gift considerations deserve some planning as well. Many winners want to help parents, children, siblings, and perhaps close friends. Those gifts may include paying off a mortgage, buying a home, giving cash, or setting aside money for education.

Those gift decisions can have gift tax and Estate Planning consequences. A winner may also want to consider whether certain gifts should be made outright or in a Trust. For younger beneficiaries, or for family members who may need creditor or asset protection, an outright gift may not be the best choice.

Having a gifting plan can also help manage expectations. It is easier to decide in advance how much the winner is comfortable giving than to make separate decisions each time someone asks for help.

Privacy rules should be reviewed before the claim is filed. Some states allow lottery winners to remain anonymous, while others require disclosure of the winner’s identity. In some states, a Trust or other entity may be able to claim the prize, although that does not necessarily mean the individuals behind it will remain private.

Once a large win becomes public, the winner may start hearing from relatives, charities, investment promoters, strangers, and people with business ideas. Knowing in advance what information will be released allows the winner to prepare for that attention.

The winner’s existing Estate Plan will very likely need significant changes. A Will or Trust created for a modest estate is often no longer appropriate after receiving a large jackpot. Powers of attorney, health care documents, beneficiary designations, and any existing asset-protection planning should all be reviewed.

Fiduciary appointments are especially important. A family member who was a reasonable choice to serve as successor Trustee when the estate consisted of a home and a few investment accounts may not be the best person to manage a much larger portfolio. A professional fiduciary, corporate Trustee, or co-Trustee arrangement may be worth considering.

The Estate Plan should also address what happens if the winner becomes incapacitated. Sudden wealth creates management issues during life, not just at death. Someone may need authority to oversee investments, real estate, business interests, and other assets if the winner is unable to act.

Charitable planning often becomes part of the conversation as well. A large jackpot can give a winner the ability to support charitable causes on a scale that was not previously possible. Depending on the winner’s goals, this may involve direct gifts to charities, establishing and funding charitable trusts, a private foundation, or a donor-advised fund.

The timing and structure of charitable gifts often have significant impact on achieving desired results. Therefore, charitable planning should be coordinated with the rest of the tax and Estate Plan rather than handled separately.

A lottery win may happen in an instant, but the decisions that follow do not need to. Before claiming a major prize, making large gifts, or committing the proceeds elsewhere, the winner should understand what options are available and which decisions may be difficult to change later.

For anyone holding a significant winning ticket, or participating in a family or group lottery arrangement, getting legal, tax, financial and charitable advice before the claim is filed can preserve options and help prevent avoidable problems once the money arrives.