Proactive action helps smooth transitions and ensures your wishes are known and carried out by family.
The Wall Street Journal recently published an article that outlines practical steps older adults can take to make the estate process less emotionally taxing for loved ones. Below we summarize five things you can do today to begin preparing:
Keep Documents Updated
A will or living trust is a great start, but it’s not enough if life changes aren’t reflected. Updating beneficiary designations on financial accounts is equally critical, as these override wills. Neglecting this can result in assets going to unintended recipients, as illustrated by a case where outdated documents caused an IRA to go to an ex-husband instead of family.
Plan for Digital Access
Documenting the usernames and passwords needed to access digital accounts (email, documents stored in the cloud, online brokerages, etc.) often go overlooked. Without proper documentation around these accounts, heirs may lose access. Setting up profiles, such as Google’s inactive account manager, or sharing secure password keys ensures that assets aren’t lost. However, sensitive information should not be included in a will document in order to maintain privacy during the probate process.
Assign Personal Property Thoughtfully
Unclear or ambiguous instructions about personal belongings often lead to family disputes. A detailed list of who gets what can prevent conflicts, as seen in a case where siblings fought over their mother’s antique doll collection. Keeping an up-to-date, handwritten, list of inventory and assignments with your estate documents is a simple but effective solution.
Provide Comprehensive Notes
Simplify the probate process for your loved ones by leaving a folder with key information like investment account details and contact information for any attorneys or financial advisors. This can prevent confusion and ensure the estate process moves efficiently. Purge unnecessary documents to avoid overwhelming your heirs or creating confusion.
Avoid Conflict in Executor Selection
Choosing one child as executor can lead to sibling rivalry. Where possible, appoint neutral third parties like a trust company or licensed fiduciary. If you must favor one heir, explain your reasoning in a letter to prevent misunderstandings and maintain family harmony.
By taking these steps, you can provide clarity and ease for your heirs during an emotionally challenging time. Proactively addressing potential issues fosters smoother transitions and lasting familial peace.
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