As Halloween approaches, we want to share with you some estate planning horror stories. Do not let these mishaps happen to you.
Creating an Invalid Will in the State of Maryland
In Maryland, a will must be signed by the person making the will (testator) and attested and signed by two credible witnesses in the presence of the person making the will. The witnesses must know that the document is intended to be that person's will, and they must also sign the document themselves. The reason for this rule is that by the time a will takes effect, the person who signed it is no longer around to say whether or not the document that is being presented to the probate court is really his or her will. But if there are witnesses, they can come to court and testify that the will-maker stated the document was his or her will and appeared to be of sound mind and not under any undue influence.
Each witness must be a legal adult with an age of 18 or over. None of the beneficiaries listed in the will nor the lawyer who drafts the will are qualified to serve as witnesses for the signature of the will.
These rules must be strictly adhered to or the will is not valid and the assets may not be distributed the way the testator intended.
Failing to Properly Specify Beneficiaries or Specific Property
A will should be drafted very thoroughly and clearly or it can lead to all sorts of confusion. Using general class language, such as ‘all my siblings’, may end up leaving out or adding to the class in ways the testator did not intend. For example, does ‘all my siblings’ include half siblings, step siblings or the guy you love like a brother? If you want to include someone in your will as a beneficiary, you need to name the person clearly and identify the specific type of property you intend for each beneficiary to inherit. This sounds simple, but if a will is not carefully worded, all types of horror may ensue.
Creating a Trust, but Failing to Fund It
During the estate planning process, it may be determined that a living trust is a better solution to accomplish your overall goals. The trust may be created by the estate planning attorney, but if the client fails to see through the funding of the trust, then it is as if the trust never existed.
Failing to Update Beneficiary Designations
This common mistake can lead to some of the most horrific estate planning horror stories. It is all too common for clients to fail to update beneficiary designations on life insurance policies, annuities and retirement accounts and then when they pass away someone like an ex-spouse inherits the asset.
To prevent estate planning horror stories from ruining your distribution plans, contact the experienced estate planning attorneys at Stouffer Legal in the Greater Baltimore area for a thorough, comprehensive plan. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or register for an upcoming free webinar using the link below:
https://attendee.gotowebinar.com/register/5272245534454831628
https://attendee.gotowebinar.com/register/8269165686586229772
https://attendee.gotowebinar.com/register/978475606617310476
https://attendee.gotowebinar.com/register/5164260298467537676
