Probate negotiations and contests are rarely easy; someone is almost always left unhappy in the end—unless, of course, a family settlement agreement is reached. Rather unique law in Texas law, a settlement agreement can be employed to simplify the probate process and ensure all heirs are satisfied when the provisions of a will are not up to the task.
There are many reasons heirs to an estate may choose an FSA, including:
A family settlement agreement, or FSA, refers to an agreement reached by all heirs as to how the estate of a deceased individual should be divided and distributed. If a will is unclear, poorly executed, or doesn’t address the entirety of an estate, then an FSA can be utilized to help finalize the probate process.
Unlike many other forms of probate navigation, an FSA is often handled outside the bounds of the court. If heirs of a particular estate want to negotiate a settlement in which one family member receives the entire estate, then that is fully permitted and the court cannot overrule such an agreement.
Say, for example, a widower passes away and leaves 90% of his estate to his eldest son after a falling out with his younger child, to whom he only leaves 10%. Subsequently, the family reconciles, and both sons now have a positive relationship with their father—nevertheless the widower passes away before updating his will. The two sons can choose to sit down and reach an alternative arrangement, perhaps choosing to split the estate in half. These negotiations can take any form necessary and do not have a formal structure; participants can come to a resolution in any way necessary.
Once papers are drawn up detailing the results of the negotiations, and are signed by all parties, the agreement is filed with the court and becomes an enforceable, binding contract.
As with many things in law, FSAs have upsides and downsides.
Conversely,there are several disadvantages to consider: