Wills are essential documents determining how assets will be distributed after death. Despite their importance, only 24 percent of Americans have a will, according to data from Caring.com. Many of those who do possess a will may need to revise it due to changes in personal circumstances or updates in estate laws. Legal experts emphasize that individuals should review their wills after significant life events, such as the death of a loved one or the birth of a child.
Sensitive Information and Public Records
One common issue found in many retirees’ wills is the inclusion of sensitive personal information. This can range from credit card and bank account numbers to Social Security numbers. According to Jaclyn Roberson, a senior partner at Roberson Duran Law, wills can become public records once filed in the probate process, depending on state laws. While some states allow for sealing probate records, others do not, making it crucial to avoid sensitive data.
Roberson advises against listing account numbers or personal identification numbers in wills. “Out of an abundance of caution, do not include account numbers, Social Security numbers, or credit card numbers in your will,” she cautions. Keeping such information out of these documents protects individuals from potential identity theft or misuse of personal data.
Another frequent oversight involves naming multiple co-executors. Many retirees wish to avoid offending family members by appointing several children as co-executors. However, this can complicate the asset distribution process. Somita Basu, a partner at Norton Basu LLP, points out that this decision can lead to infighting and litigation. “Seniors often make the common mistake of making multiple children co-executors, so as not to offend anyone,” Basu explains.
Avoiding Potential Conflicts
The more individuals involved in the decision-making process, the greater the risk of disputes. Legal advisor Nathan Wente from Real Estate Bees notes that adding multiple co-executors creates a “too many cooks in the kitchen” scenario. He recommends keeping the number of executors to a minimum unless there is a compelling reason to have more than one.
Moreover, retirees sometimes assign nominal amounts to disinherited beneficiaries to avoid conflict. For instance, a small sum of money, such as $100, can give estranged family members grounds to challenge the will in court. Allison Harrison, an attorney at ALH Law Group, highlights the risks involved. “We see frequently a child, who is estranged from the parents, challenge a will because they are not mentioned at all or given a nominal amount,” she states.
Instead of assigning minimal amounts, Harrison suggests outright disinheritance with a clear explanation included in the will. This approach can preempt potential challenges and provide clarity regarding the testator’s intentions. For example, leaving a significant sum, such as $10,000 from a $250,000 estate divided among multiple beneficiaries, may dissuade challenges by providing meaningful compensation.
Updating wills periodically and making necessary adjustments can help retirees avoid conflicts and ensure their wishes are honored. Legal experts stress the importance of consulting with an estate planning attorney to craft a comprehensive and effective will. By addressing these common pitfalls, retirees can better secure their legacies and provide peace of mind to their loved ones.
