Poorly written Wills (or revocable trusts) can create enormous headaches for the Executor (or successor Trustee) who has to track down Beneficiaries and interpret what the document requires. “Simple Wills” that don’t address the details can lead to expensive legal troubles later. Here are some issues to think about when you are designing your estate plan, so that your lawyer can prepare a plan that is easy and clear to implement.
The Executor is the person who is named in the Will to handle the assets, pay the bills/taxes, and give out the money at the end. The Successor Trustee of a Revocable Living trust has a similar role.
The Beneficiaries are the people who will inherit under the Will or receive assets from the Trust. Sometimes people who have no children like to spread their wealth among a tremendous number of individuals We had an estate with about 20 beneficiaries. Many were unknown to the Executor. Some were deceased and the Executor had to track down their children. Some had common names and the Executor had trouble finding them. The Will specified that if a certain Beneficiary was divorced, his share has to go to his children. The Executor knows he is divorced; but before the share can be given to his children, the Executor needs to see the actual divorce Judgment. The good intentions of the person who had died led to a tremendous amount of work for the Executor. One idea is to prepare a list of those names, addresses and phone numbers and put it in the envelope with the Will, to help the Executor get started. Then update it every now and then.
Real Estate — Is a family member living in your house? Do you want the Executor (or Successor Trustee) to delay selling for a bit to enable that person to get re-situated? During that time, who has to pay the costs — the Occupant or the Estate/Executor? Providing specific instructions within the Will can prevent disputes after the fact. Sometimes the occupant can’t actually afford to stay in the house, even if they want to. In other situations, you may want to guarantee an ongoing right to reside in the premises, but give that person the financial obligations. Your lawyer can spell it all out in the Will or Trust.
Who gets the contents of the home? This issue often creates tremendous family strife, whether the home is owned by the decedent or is held within a revocable trust. You can specify how the items are to be divided up, and whether their value (if known) is to be allocated to the shares or not. Executors and Trustees often find that dealing with contents is more difficult than all of the other responsibilities they have to wrap up the Estate or Trust.
Disabled Beneficiary. Are any of the Beneficiaries on public benefits like SSI, Medicaid or services from the Division of Developmental Disabilities (DDD?) Talk to your lawyer about how to shelter their inheritance in a Trust that won’t disrupt the benefits, such as a Supplemental Needs Trust that’s included in your Will or Revocable trust Without a trust, court proceeds may be required to create the trust later and protect those benefits.
Keep the Will or Revocable Trust in a safe dry place where it can be found by the Executor or Successor trustee when the time comes. Be sure that person knows where you’re keeping it!
Careful Planning can Prevent a Crisis ………. call to discuss updates to your estate plan. 732-382-6070