Take, for example, the case of "John." John drafted his own will. He left to his domestic partner, Fiona, different assets including several bank accounts, his individual retirement account, and a percentage of a corporation. At John's death, his family challenged Fiona's inheritance. They first challenged the bank accounts John had left to Fiona. The bank had failed and had been taken over by another bank, so the bank accounts no longer existed. Therefore, John's family argued that no bank accounts should be transferred to Fiona. Also, John's IRA had titled his sister as the beneficiary, contrary to the will, so the money was paid to her. Finally, at John's death the family alleged that the will was ambiguous regarding the aforementioned corporation. They claimed John only meant to leave Fiona a percentage of his share, rather than his entire share. Needless to say, the family and Fiona ended up in a court battle.
You may think, my family gets along great with my partner or fiancé; this would never happen to us. However, in the shock and uncertainty following a loved one's death relationships can become very strained. Had John taken the time to consult a qualified estate planning attorney for a soundproof estate plan, his family and partner could have avoided the resultant lawyer's fees and multiple trips to court.
Let's look at the case of "Simon" for another example of a problematic estate plan. Simon split his property evenly amongst his three children. However, his eldest son "Jim" died before Simon passed away. This raised some questions when Simon's estate was being settled. Should Jim's share be redivided amongst his siblings, or should it go to his heirs? Jim had two children and a step-son. Should the inheritance go partially to his step-child? Should all his children be treated equally, or should his biological children receive a larger share? Things can get complicated when situations such as this arise, and unless you've planned for contingencies like this your wishes may not be followed.
At the Law Offices of Daniel O. Hands, P.C., when we hand someone a completed estate plan we don't just hand them a piece of paper. They leave with a thick book and a variety of different documents to cover all their needs. We take time to go over the documents with our clients to ensure everything is drafted according to their wishes. Most importantly, our estate planning documents provide for contingencies. That's why they're so thick. Unborn children, the death of a beneficiary, divorce, and special needs are just a few contingencies that can be accounted for with a properly created estate plan.
Make sure your estate plan is up to date, and remind your friends and family that spending the money now to preserve their estate will save their loved ones money and troubles further down the road.
