Wills play a critical role in deciding how your assets (estate) are distributed after you die.
Yet just 24 percent of Americans have a will, according to senior-living advisor Caring.com. And even those who do, may have sections in it that are outdated, either because estate laws have been updated or because their wishes have changed.
“People should review their wills any time they experience a life-changing event after the will has been prepared,” said 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 spoke with multiple will and estate planning experts to identify three common things found in wills that retirees should remove.
Identity risks
Some retirees have wills that include sensitive information, such as credit card and bank account numbers, Social Security numbers and even vehicle identification numbers (VIN).
“Wills can become public record once filed in the probate process, depending on your state,” Roberson said. “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 kept safe from the public, that’s not the case in every state. So, take caution about what personal information you include in your will.
“Out of an abundance of caution, do not include account numbers, Social Security numbers, or credit card numbers in your will,” she said.
Too many cooks
Another mistake that retirees often make with a will is adding too many co-executors – the people you pick to sort out who gets which assets from your estate.
Adding more people to what’s already a difficult decision process can become more complicated. People-pleasing often drives the decision, said attorney Somita Basu, partner at law firm Norton Basu LLP.
“Seniors often make the common mistake of making multiple children co-executors, so as not to offend anyone,” Basu told the Independent in an email. “This often leads to litigation and infighting and, at the very least, a more complex process to distribute assets.”
In other words, more people involved in a decision means more potential issues, said attorney Nathan Wente, a legal advisor at online real estate platform Real Estate Bees.
“By naming more than one person, you are creating a ‘too many cooks in the kitchen’ scenario,” Wente said in an email to The Independent. “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.”
Not only can naming multiple co-executors cause conflict, but it can also be more expensive.
“I will charge a higher fee to assist in probates where I have to have more than one client,” Wente said.
Money troubles
In some cases, people want to avoid the conflict that comes with disinheriting someone, so they assign a small amount of money to that person so the recipient doesn’t feel left out.
However, that can turn out to be an outsized issue when the court processes your will – as even $100 assigned to someone gives them the chance to object to how the estate is distributed, said 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 told The Independent 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 small amount of money, Harrison suggests disinheriting them instead and leaving “an explanation with details on why this beneficiary is excluded” or 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).”
