Disinheriting a family member or other potential beneficiary is usually considered an intentional occurrence. But it quite frequently happens purely by accident (known as “accidental disinheritance”) – either through procrastination or simply a lack of understanding of how estate and probate law work.
Many people assume that a will on its own will dictate how assets are distributed. But there are certain factors that can work against what you may have laid out in your will. For example, a will only dictates what happens to the assets controlled by the decedent alone. If a home or other property is jointly owned with a spouse, ownership transfers to the spouse, who can alter how that asset is handled in their own will and estate plan. Additionally, a will does not govern an asset with a named beneficiary on it.
Accidental or “unintended” disinheritance of your loved ones can be avoided by asking yourself a few simple questions.
1: Do you have a will or trust?
The number one cause of accidental disinheritance is simply not having a will or trust at all. Some people assume that the estate will be handled fairly through probate, but that’s never a safe bet. Assets can remain tied up until the court determines the legal heirs, who may not be the ones you would have intended.
2: Is your estate plan up to date with your current life stage?
Nobody likes talking about their own death, so it’s easy to create an estate plan, file it away and forget about it. But your estate plan documents should be considered more like living documents that are altered and adjusted to make sense for the changes in your life. Have you remarried? Divorced? Lost a child or spouse? Or have you become estranged from a previously close family member? Any major life or family change should trigger you to revisit your estate plan and ensure that it continues to reflect your wishes.
3: Have you left everything to your spouse? And will that spouse honor your wishes?
You love and trust your spouse. But do you have full confidence that your spouse will honor your choices about beneficiaries after your death? A common scenario is a husband and wife leaving everything to each other, with the intention that the surviving spouse will provide for any children in their own estate plan. But the surviving spouse can amend the estate plan and disinherit a beneficiary. For example, in a blended family, a surviving spouse can change the estate plan to leave everything to their own children and cut out step-children or grandchildren.
4: Did you consult a professional advisor?
There are many online tools for creating your own estate plan. But state laws are extremely nuanced and can be difficult to navigate for novices. You may not fully understand what an online form is asking or the consequences of checking one box versus another. If your estate plan is insufficient, there could be accidental omissions that you don’t realize. This is particularly true for individuals with complex estates made up of multiple large assets.
We can help ensure your legacy is protected.
At Wills & Wellness Estate Planning, we specialize in personalized estate planning that fits your family. We know that your family will grow and change, and we strategize with you to create a lasting legacy, not just a way to distribute your assets after your death. We know that you will continually outgrow your estate plan, so we focus on building ongoing relationships so your plan evolves with you.