Estate planning is more than just a set of documents—it’s about ensuring your wishes are carried out and your loved ones are protected when the unexpected happens. A colleague recently shared a story with me that perfectly illustrates the risks of cutting corners and the importance of understanding how your assets and legal documents work together.
The Problem: Misaligned Planning
In this case, the client had prepared a Will using an online legal service designed to provide basic legal documents at an affordable price. While this approach can work for simple situations, it became clear that the process had significant gaps. My colleague was named Executor of the client’s Will, tasked with managing the estate, paying off debts, and ensuring assets were distributed according to the deceased's wishes. But during a review of the estate, two major issues stood out:
Conflicting Beneficiaries: The client had named direct beneficiaries for her assets—different from those outlined in her Will. This kind of mismatch can lead to confusion and even legal disputes after death.
No Funds for Expenses: Since all assets had direct beneficiaries, there would be no funds flowing into the estate to cover funeral costs, debts, or administrative expenses. This meant the estate could have faced unnecessary complications, including potential court involvement.
When asked if the attorney who prepared the Will had explained how assets interact with a Will, the client admitted there had been no conversation or guidance. The process was purely transactional—fill out forms, sign the documents, and move on.
The Fix: Education and Action
My colleague spent over an hour educating the client about how estate planning should work. Together, they restructured the plan, removing direct beneficiaries so that assets would flow into the estate. This adjustment accomplished two key things:
Funds for Estate Expenses: Ensured there would be money available to cover funeral costs, debts, and administrative needs.
Wishes Fulfilled: Allowed the remaining assets to be distributed according to the Will, ensuring the client’s intentions were carried out as planned.
Fortunately, because the estate was relatively small (approximately $45,000) and not subject to probate, this solution was both practical and cost-effective.
The Lesson: Don’t Skimp on Estate Planning
The takeaway is simple but powerful: estate planning isn’t the place to cut corners. While online services can seem convenient and affordable, they often lack the personalized advice necessary to ensure your plan works seamlessly.
Here’s what can go wrong when estate planning isn’t done properly:
Conflicting Instructions: Assets with direct beneficiaries that don’t align with your Will can lead to disputes and unintended distributions, and sometimes, disputes.
No Funds for Administration: Without assets flowing into the estate, executors may struggle to cover expenses, leading to delays or court intervention.
Costly Errors: Fixing mistakes after the fact often results in more legal fees, probate complications, and stress for your family.
Your Estate, Your Legacy
Estate planning is about more than just documents—it’s about protecting your legacy and providing peace of mind for your loved ones. This story is a reminder of just how important expert guidance can be. By working with a trusted attorney, you can ensure your estate plan is comprehensive, clear, and designed to work exactly as you intend.
If you’re ready to create or review your estate plan, let’s talk. Just click here to schedule an initial complimentary 15-minute call to learn more and to start our planning process today.
Together, we can ensure your family’s future is secure and your wishes are honored.