An estate plan should be completed as early as possible for New Jersey residents and periodically updated throughout a person's life to make sure that the estate plan addresses the particular needs of a client.

A comprehensive estate plan can help prevent unnecessary litigation in several ways. Many will challenges arise out of oral promises. One of the most infamous recent probate lawsuits based on an alleged oral promise was brought by the mistress of Australia's richest men, Richard Pratt. Although this probate litigation may seem exotic to many New Jersey residents, it is a stark reminder that solid estate planning can help fend off similar lawsuits.

The suit against billionaire businessman Richard Pratt was lodged by his mistress. The mistress alleged that the businessman had promised her a $100,000 car, $55,000 per year for her rent and travel expenses, a $5 million trust fund for each of her children, and $500,000 per year salary for being his full-time mistress, which required her to give up her lucrative career as a high-end escort.

Pratt's wife of 50 years and his estate's legal team was understandably not amused by the lawsuit. They portrayed the mistress as a drug addict who agreed to settle any claims she had against Pratt for $150,000 when he died.

A court recently threw out the mistress's lawsuit because it determined that the alleged oral promise was insufficient to support her claim. We have covered similar probate contests based on claims of oral promises including that of Martin Luther King and his papers. These cases highlight the insufficiency of oral promises to challenge a will and the importance of a comprehensive estate plan and a competent estate administrator.

Source: Forbes, "Estate of Richard Pratt, Australian Billionaire, Defeats Mistress In Court," Danielle and Andy Mayoras, Jan. 16, 2012