Three Critical Items Retirees Must Remove from Their Wills
Wills serve as the cornerstone of estate planning, dictating how assets are distributed after death. However, a startling statistic reveals that only 24 percent of Americans have a will, according to senior-living advisor Caring.com. Even among those who do, many documents contain outdated provisions due to changes in estate laws or shifts in personal wishes over time. Attorney Jaclyn Roberson, senior partner at Roberson Duran Law, emphasises the importance of regular reviews: "People should review their wills any time they experience a life-changing event after the will has been prepared. 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."
In consultation with multiple estate planning experts, three common yet problematic items have been identified that retirees should promptly remove from their wills to safeguard their legacies.
Identity Risks: Sensitive Personal Information
Many retirees inadvertently include highly sensitive details in their wills, such as credit card numbers, bank account information, Social Security numbers, and vehicle identification numbers (VINs). This practice poses significant identity theft risks, as wills can become public record during the probate process, depending on state regulations. Attorney Jaclyn Roberson warns, "Wills can become public record once filed in the probate process, depending on your state. 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 some states allow probate records to be sealed, this is not universal, making caution essential. Roberson advises, "Out of an abundance of caution, do not include account numbers, Social Security numbers, or credit card numbers in your will." Instead, retirees should store such information securely elsewhere and reference it in broader terms within the will.
Too Many Cooks: Excessive Co-Executors
Another frequent error is appointing too many co-executors, the individuals responsible for administering the estate. This often stems from a desire to avoid offending family members, but it can lead to complications and conflict. Attorney Somita Basu, partner at Norton Basu LLP, explains, "Seniors often make the common mistake of making multiple children co-executors, so as not to offend anyone. 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 Real Estate Bees, echoes this concern, stating, "By naming more than one person, you are creating a 'too many cooks in the kitchen' scenario. 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 familial discord, this can increase costs, as Wente notes, "I will charge a higher fee to assist in probates where I have to have more than one client." Experts recommend selecting a single, trustworthy executor or, if necessary, a professional to streamline the process.
Money Troubles: Nominal Bequests
In an attempt to mitigate hurt feelings, some retirees leave small amounts of money to individuals they wish to disinherit, such as $10 or $100. However, this can backfire dramatically by giving those recipients legal standing to challenge the will. Attorney Allison Harrison of ALH Law Group highlights this issue: "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). Now, we have to prove the will is valid and the testator is of sound mind once the testator is dead."
Such challenges can delay asset distribution and incur substantial legal fees. Harrison suggests alternatives: instead of a token sum, either disinherit the person entirely with a clear explanation in the will or provide a larger amount that discourages litigation. She recommends, "giving the recipient enough money to make them think twice about challenging the will (i.e., $10,000 of a $250,000 estate with 6 beneficiaries)." This strategic approach can protect the estate from costly disputes.
In summary, retirees must proactively review and update their wills, removing sensitive personal data, limiting co-executors, and avoiding nominal bequests. By addressing these three common pitfalls, individuals can ensure their final wishes are honoured efficiently and without unnecessary conflict, providing peace of mind for themselves and their heirs.
