Critical Warnings for American Retirees Updating Their Wills
Wills are essential legal documents that dictate how an individual's assets, or estate, are distributed after death. However, only 24 percent of Americans have a will, according to senior-living advisor Caring.com. Even among those who do, many wills contain outdated provisions due to changes in estate laws or personal circumstances. Attorney Jaclyn Roberson, senior partner at Roberson Duran Law, emphasizes 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."
Identity Risks: Avoid Including Sensitive Information
Many retirees inadvertently include highly sensitive personal details in their wills, such as credit card numbers, bank account information, Social Security numbers, and vehicle identification numbers (VINs). Attorney Jaclyn Roberson cautions that wills can become public record during the probate process, depending on state regulations. "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. Roberson advises: "Out of an abundance of caution, do not include account numbers, Social Security numbers, or credit card numbers in your will."
Too Many Cooks: The Peril of Multiple Co-Executors
Another common error is appointing too many co-executors, the individuals responsible for managing and distributing the estate. Attorney Somita Basu, partner at Norton Basu LLP, notes that seniors often make this mistake to avoid offending family members. "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, compares it to a "too many cooks in the kitchen" scenario, warning that multiple co-executors can increase conflicts and costs. "I will charge a higher fee to assist in probates where I have to have more than one client," Wente explains.
Money Troubles: The Dangers of Small Bequests
In an attempt to avoid conflict, some retirees leave small amounts of money to individuals they wish to disinherit, such as estranged family members. However, attorney Allison Harrison of ALH Law Group warns that even a nominal sum, like $10 or $100, can give recipients legal standing to challenge the will. "We see frequently a child, who is estranged from the parents, will challenge a will because they are not mentioned at all or given a nominal amount. Now, we have to prove the will is valid and the testator is of sound mind once the testator is dead." Instead, Harrison recommends either disinheriting the person with a clear explanation or providing a substantial amount that discourages legal challenges, such as $10,000 from a $250,000 estate.
Regularly updating wills and removing these problematic elements can help retirees ensure their final wishes are honored smoothly, minimizing legal hurdles and family disputes.
