Legal Definitions - family arrangement

A family arrangement is an informal understanding or agreement made among family members, typically concerning the division, management, or distribution of property or assets. These agreements often aim to distribute property in a way that differs from what might be dictated by a will, a trust, or standard inheritance laws, often to achieve a more equitable or desired outcome for the family.

• Example 1: Deviating from Intestacy Laws
  After their mother passed away without a will, state law dictated that her three adult children should inherit her modest estate equally. However, one sibling had been the primary caregiver for their mother for several years, providing extensive support. The other two siblings, who were financially stable, informally agreed that the caregiver sibling should receive a larger share of the estate (e.g., 60%), with the remaining 40% split between themselves. This was done to acknowledge the caregiver's significant contributions.

  This illustrates a family arrangement because it is an informal agreement among family members (the siblings) to distribute property (their mother's estate) in a manner that differs from the standard legal provisions (the state's intestacy laws).

• Example 2: Modifying Will Provisions
  Mr. Henderson's will specified that his entire estate, including his valuable art collection, should be divided equally between his two children, Sarah and David. After his passing, Sarah expressed little interest in the art collection, preferring financial assets. David, an avid art enthusiast, wished to keep the collection intact. They informally agreed that David would inherit the entire art collection, and in exchange, Sarah would receive a larger share of the financial assets, ensuring the overall value received by each sibling remained roughly equal, but tailored to their preferences.

  This is a family arrangement because it represents an informal agreement between family members (Sarah and David) to alter the specific distribution of property (the art collection and financial assets) from the terms explicitly outlined in their father's will.

• Example 3: Planning for Future Inheritance of a Shared Asset
  The Miller family owned a beloved vacation cabin that had been passed down through generations. The parents, still living, had three adult children. While the parents' will stated the cabin would be equally divided among the children, the children knew that joint ownership could lead to disputes. They informally agreed that upon their parents' passing, the eldest daughter, who lived closest and used the cabin most frequently, would inherit the cabin outright. In return, the other two siblings would receive a larger share of other family investments and assets to balance the inheritance, ensuring the cabin remained in the family but with a clear owner.

  This demonstrates a family arrangement as it is an informal agreement among family members (parents and children) about how specific property (the vacation cabin and other assets) will be distributed in the future, potentially differing from a standard equal division outlined in a will, to achieve a mutually agreed-upon and practical outcome.