Estate Planning Experts: Three Critical Items Retirees Must Remove From Wills
Estate planning represents a complex legal process that often necessitates professional guidance to navigate effectively. Wills serve a fundamental role in determining the distribution of an individual's assets following their death. However, according to senior-living advisor Caring.com, a mere 24 percent of Americans currently possess a will. Even among those who have taken this crucial step, many documents contain outdated provisions due to evolving estate laws or changes in personal circumstances.
"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 specialists to identify three common, yet problematic, items frequently found in retirees' wills that should be promptly removed.
1. Sensitive Personal Information and Identity Risks
A significant number of retirees inadvertently include highly sensitive personal data within their wills, such as credit card numbers, bank account details, Social Security numbers, and even vehicle identification numbers (VINs). This practice poses a severe identity theft risk.
"Wills can become public record once filed in the probate process, depending on your state," warned Roberson. "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."
Although probate records can sometimes be sealed and protected from public access, this safeguard is not universally applied across all jurisdictions. Consequently, extreme caution is advised regarding the type of personal information documented 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.
2. Appointing Too Many Co-Executors
Another frequent error retirees make is designating an excessive number of co-executors—the individuals tasked with administering the estate and distributing assets. Introducing multiple decision-makers into an already challenging process often leads to complications, driven by a desire to avoid offending family members.
"Seniors often make the common mistake of making multiple children co-executors, so as not to offend anyone," explained attorney Somita Basu, partner at law firm Norton Basu LLP. "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 concern, highlighting the operational difficulties.
"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 increase administrative costs.
"I will charge a higher fee to assist in probates where I have to have more than one client," Wente noted, illustrating the financial implications.
3. Nominal Monetary Bequests to Avoid Conflict
In an attempt to sidestep the emotional turmoil of disinheriting someone, some individuals opt to leave a small, symbolic sum of money to that person. However, this strategy can backfire dramatically during probate. Even a bequest as modest as $100 grants the recipient legal standing to contest the will's distribution of the broader estate.
"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)," said Allison Harrison, an attorney at ALH Law Group. "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 a more direct approach: formal disinheritance. She suggests either providing a clear, detailed explanation within the estate planning documents outlining why the beneficiary is excluded, or alternatively, leaving a sufficiently substantial sum that discourages legal challenges.
"[Give] enough money to make them think twice about challenging the will (i.e., $10,000 of a $250,000 estate with 6 beneficiaries)," Harrison recommended.
Regularly reviewing and updating a will with professional legal counsel remains the most effective method for ensuring an estate plan accurately reflects one's wishes and avoids these common, costly pitfalls.
