Based Upon A True Story--to disclose or not to disclose?

In addition to working on my documentary project, I want to finish a screenplay that I've been working on for a few years now. It is an amazing story: a quasi-famous family member was murdered by someone close to him and, for all intents and purposes the killer will almost certainly get away with it and never be brought to justice (it's a cold case file now). The story is complete with exotic/gorgeous location(s), government corruption, greedy relatives, corrupt bankers, a love triangle, lies, deception, robbery, and ultimately, murder.

I had been hired by the man who was murdered to come work for him 2 months prior to his death--he was killed 3 days before I started the job while I was enroute to the remote location. Ironically enough, I was hired to replace the person who wound up killing him....

I spent the next 9 months working closely with his family trying to clean up/manage his affairs in this remote/exotic location, and became quite close with them. On more than a few occasions we had said that it was such a tragic and yet intriguing story with so many twists and turns that I really should write a book about it, or, what a great movie this would make. I've mentioned it a few times in the years since that I was working on an outline for a book or screenplay, and they have always seemed supportive. They have nothing to hide--their family member did nothing wrong and was tragically and senselessly murdered for money, power, and lust. I think they would like to get the story told because for all intents and purposes the killer has gotten away with it. However, they may be somewhat reluctant to re-open the old wounds at this point too.

Given the remote location and the time that has passed, it's very unlikely that anyone (outside of those who were directly involved) would know about what really happened, and, I would use fake names throughout the story. So, my question is this: as I really dive into this project and see it to completion, do I/should I disclose the fact that this is based upon a true story? From a studio/potential screenplay buyer's perspective, is that a good thing (i.e. adds to the realism/veracity of the story), or, is it a bad thing in terms of the possibility of legal action from the family should they decide they don't want the story told?

Many thanks,

NP
 
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If you've previously talked to the family about making into a film/story then approaching them to get signed permission doesn't sound like too much of an issue. A release form to cover their 'likeness'.

I think a 'based on a true story' often has the power to attract more viewers
 
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