Three Critical Items American Retirees Must Remove From Their Wills
Estate planning is a complex and essential process that often requires professional guidance to navigate effectively. Wills serve a crucial function in determining how an individual's assets, or estate, are distributed after their death. However, a startling statistic from senior-living advisor Caring.com reveals that only 24 percent of Americans have a will. Even among those who do, many documents contain outdated sections due to changes in estate laws or shifts in personal wishes over time.
"People should review their wills any time they experience a life-changing event after the will has been prepared," emphasised attorney Jaclyn Roberson, senior partner at Roberson Duran Law. "For example, the death of a spouse, child, or other loved one who was included in the will should prompt a review. The birth of a child, grandchild, or anyone else you would want to include is also a reason to revisit it."
The Independent consulted multiple will and estate planning experts to identify three common items found in wills that retirees should promptly remove to safeguard their legacy and prevent future complications.
Identity Risks: Sensitive Personal Information
Many retirees inadvertently include highly sensitive information in their wills, such as credit card numbers, bank account details, Social Security numbers, and even vehicle identification numbers (VINs). This practice poses significant identity theft risks, as wills can become public record once filed in the probate process, depending on state regulations.
"Wills can become public record once filed in the probate process, depending on your state," Roberson cautioned. "That does not mean the average person automatically receives a copy. However, anyone who is curious about your case can go to the county or court records and request to see your will."
While probate records can be sealed and protected from public access in some states, this is not universally guaranteed. Therefore, extreme caution is advised regarding the type of personal information included in a will. "Out of an abundance of caution, do not include account numbers, Social Security numbers, or credit card numbers in your will," she strongly recommended.
Too Many Cooks: Excessive Co-Executors
Another frequent mistake retirees make is appointing too many co-executors—the individuals responsible for managing and distributing the estate's assets. Adding multiple people to an already difficult decision-making process can lead to increased complexity and conflict. Attorney Somita Basu, partner at law firm Norton Basu LLP, noted that people-pleasing often drives this decision.
"Seniors often make the common mistake of making multiple children co-executors, so as not to offend anyone," Basu explained in an email to The Independent. "This often leads to litigation and infighting and, at the very least, a more complex process to distribute assets."
Attorney Nathan Wente, a legal advisor at online real estate platform Real Estate Bees, echoed this sentiment, warning that more individuals involved typically means more potential issues. "By naming more than one person, you are creating a 'too many cooks in the kitchen' scenario," Wente stated. "Unless there is a really good reason to have more than one person serving at a time, don't name multiple people to serve as co-executors."
Beyond fostering conflict, appointing multiple co-executors can also escalate costs. "I will charge a higher fee to assist in probates where I have to have more than one client," Wente added, highlighting the financial implications of this oversight.
Money Troubles: Nominal Inheritances
In an attempt to avoid the discomfort of disinheriting someone, some individuals assign a small, symbolic amount of money to that person to prevent feelings of exclusion. However, this well-intentioned gesture can backfire dramatically during the probate process. Even a modest sum, such as $100, grants the recipient legal standing to object to the estate's distribution, explained Allison Harrison, an attorney at ALH Law Group.
"We see frequently a child, who is estranged from the parents, [who] will challenge a will because they are not mentioned at all or given a nominal amount ($10)," Harrison detailed in an email. "Now, we have to prove the will is valid and the testator is of sound mind once the testator is dead."
Instead of leaving a token amount, Harrison advises either disinheriting the individual entirely with a clear explanation for their exclusion or providing a substantial enough inheritance to deter legal challenges. For instance, in a $250,000 estate with six beneficiaries, allocating $10,000 might make a potential challenger think twice before contesting the will.
Regularly reviewing and updating a will is paramount to ensuring it reflects current laws and personal intentions. By removing sensitive personal information, limiting the number of co-executors, and avoiding nominal inheritances, retirees can significantly reduce the risk of identity theft, family disputes, and protracted legal battles, thereby securing a smoother transition of their assets to intended beneficiaries.
