King & Wood, P.A.

An Estate Plan Can Say, ‘I Love You’ More than Flowers

“Planning, whether it’s related to creating a special day or evening for someone or their future, is one of the greatest expressions of a person’s love.”

Estate planning is more romantic than you might think. It ensures that someone or a group of people you care about receive instructions for challenging situations and how assets are distributed. It’s about ensuring that someone has a power of attorney and medical directives. These are acts of love, according to a recent article from Wealth Management, “Say ‘I Love You’ With an Estate Plan.”

With an estate plan in place, family members aren’t forced to make difficult decisions or worry about someone’s wishes not being granted. Without it, loved ones may face a lifetime of regret.

You may think spouses automatically receive everything upon the death of a spouse. However, it doesn’t always work this way. If there are children and there is no will, the assets are divided between the spouse and the children in many states. If the children are minors, the surviving spouse may be left scrambling to make up the difference to support the children. They won’t be able to access the minor children’s inheritance, as a court-appointed conservator may control the assets.

The last thing you want a grieving spouse to have to do after you’ve passed is to deal with legal complications, unexpected expenses and a struggle to pay bills. Creating an estate plan with an experienced estate planning attorney prepares the spouses for what will happen when one passes and allows the family to focus on grieving and caring for each other, instead of untangling disorganized finances.

Planning for estate taxes is another act of care for loved ones. Life insurance is often used to cover the cost of any taxes, which reduces the taxable estate and adds to the assets a loved one will receive. Without planning, an estate can lose one-sixth of its value in taxes alone, so tax planning should always be part of an estate plan.

To make estate plans more meaningful, you may want to leave a written note to loved ones. Often called an ethical will, this personal message shares the life lessons you’ve learned, values and encouragement. For some family members, the message of thoughtful and loving advice becomes an annual ritual, where the ethical will is read every year and often referred to when facing tough decisions in their personal and professional lives.

When someone dies unexpectedly or has no opportunity to say goodbye, having these final words can anchor loved ones through life. Putting your love and wisdom into a letter will add to your legacy.

Estate planning is more than paperwork. It lightens the pain of loss, preserves peace among the family and demonstrates caring for those you love. If you don’t have an estate plan, give yourself and your loved ones peace of mind by making an appointment today.

Reference: Wealth Management (Feb. 13, 2025) “Say ‘I Love You’ With an Estate Plan”

What are the Biggest Mistakes People Make with Estate Plans?

“These wills gone wild may be extreme examples of poor estate planning. However, experts explain how easily a will can go to the dogs.”

Ask any estate planning attorney for a horror story and step back as they come flooding out. Moms who leave millions to a veterinarian to care for a beloved cat or uncles who grabbed and kept a half-million-dollar insurance policy intended for a son are just a few examples.

When your estate plan isn’t properly prepared, many things can go wrong, according to a recent article from Kiplinger, “Wills Gone Wild: How to Avoid Estate Planning Disasters.” Assets can end up with the wrong people, or beloved children can be disinherited entirely. A bungled do-it-yourself will can lead to a distant cousin inheriting your entire estate, while a life-long partner ends up homeless and impoverished.

If you intend to protect those you love, you’ll need to sit down with an estate planning attorney and create a last will and testament and other estate planning documents. Without a will, you can be sure family discord will follow your passing.

Aretha Franklin provides one lesson on what happens when there’s no formal will. Not one but two handwritten or holographic wills were found in her home in Detroit after she died. One, dated 2010, was found in a locked cabinet, while the second was found under a couch cushion, dated 2014. There were four sons, and all disagreed about which one was valid. The matter went to court, with a judge ruling the 2014 will was valid. Not all states accept holographic wills and leaving more than one copy around the home doesn’t guarantee anything but a family fight and legal expenses.

Many people are testing online wills. However, the unintended consequences are very costly for loved ones. One father decided he would create a will without an estate planning attorney. When he died, instead of dividing his estate equally between three adult children, all his property and assets went to the children and the grandchildren. Each of his three children had children, so what he intended to be a simple three-way split ended up being divided into many small gifts.

Second and subsequent marriages can complicate estates. Estate planning attorneys all have stories about remarried people who want their estate to go to the new spouse but forget to take care of their children from the first marriage. When the second spouse inherits the entire estate, it’s easy enough to rewrite the will, and the deceased spouse’s kids are disinherited. A surviving spouse is under no legal obligation to maintain an old will or to give assets to stepchildren. Estate planning attorneys know how to use trusts and other strategies to protect the surviving spouse and the biological children.

Pets are often part of estate planning disasters. One attorney tells the tale of a client estranged from her only child, a daughter. She wanted to leave everything in her estate to her cats. However, something went very wrong, and her veterinarian inherited $3.5 million. In this case, the vet was an upstanding citizen and worked with an estate planning attorney to ensure any monies left after the death of the cats went to animal charities. However, there was no legal requirement for the vet to do so.

Elderly people are often preyed upon by their trusted caretakers. One horror story concerned two elderly men who lived together and shared a home care nurse. When one of the men was hospitalized, the caretaker and her husband came to the home and exploited the second man. The caregiver convinced the elderly man to make her a beneficiary of a $500,000 CD and joint owner of a lakefront vacation home.

When it comes to estate planning, the only way to avoid a nightmare legacy is to meet with an experienced estate planning attorney and have an estate plan created. Estate planning attorneys have seen more wild tales than you can imagine and can ensure that you don’t become one of them.

Reference: Kiplinger (Jan. 29, 2025) “Wills Gone Wild: How to Avoid Estate Planning Disasters”

Estate Planning Questions for Couples with a Big Age Gap

“For couples with an age difference of 10 years or more, assets need to last significantly longer to cover both of their retirements, making the risks of missteps higher.”

Even if it was never an issue in the past, when couples with a significant age gap reach their 60s and 70s, the age difference can present challenges. When one partner is ten or more years younger than the other, assets need to last longer, and the impact of poor planning or mistakes can be far more complex. The article in Barron’s “Big Age Gap With Your Spouse? What You Need to Know” explains several vital issues.

Examine healthcare coverage and income needs. Health insurance can become a significant issue, especially if one partner is old enough for Medicare and the other does not yet qualify. How will the couple ensure health insurance if the older partner retires and the younger depends on the older partner for healthcare? The younger partner must buy independent healthcare coverage, which can be a budget-buster.

Be strategic about Social Security. Experts advise having the older spouse delay taking Social Security benefits if they are the higher-income partner. If the older spouse passes, the younger spouse can get the bigger of the two Social Security benefits. Delaying benefits means the benefits will be higher.

Planning for RMDs—Required Minimum Distributions. Roth conversions may be a great option for couples with a significant age gap. Large traditional tax-deferred individual IRAs come with large RMDs. When one spouse dies, the surviving spouse is taxed as a single person, which means they’ll hit high tax brackets sooner. However, if the couple converted their IRAs to Roths, the surviving spouse could withdraw without taxes.

Estate planning becomes trickier with a significant age gap, especially if the spouses have been married before. Provisions in their estate plan need to be made for both the surviving spouse and children from prior marriages. An estate planning attorney should be consulted to discuss how trusts can protect the surviving spouse, so no one is disinherited. Beneficiary accounts also need to be checked for beneficiary designations.

Couples with a significant age gap need to address their own mortality. A younger partner who is financially dependent on an older partner needs to be involved in estate and finance planning, so they know what assets and debts exist. Life has a way of throwing curve balls, so both partners need to be prepared for incapacity and death.

Plans should be reviewed more often than for couples in the same generation. A lot can happen in six months, especially if one or both partners have health issues.

Reference: Barron’s (May 19, 2024) “Big Age Gap With Your Spouse? What You Need to Know.”

What are the Rules for Inheriting an IRA?

“Know what to expect if you inherit an IRA and how to establish a plan for taking distributions.”

Inherited Individual Retirement Accounts (IRAs) are created when the funds in an IRA or employer-sponsored retirement plans are inherited after the original owner dies. The beneficiary may not make any additional contributions to the account and must comply with a series of rules regarding the inherited account or face an expensive tax situation. A recent article from U.S. News & World Report, “What Is the Inherited IRA 10-Year Rule?” explains the basics beneficiaries need to know.

What is the Inherited 10-Year Rule? The rule applies to those who inherit an IRA on or after January 1, 2020. In most situations, all funds must be withdrawn within ten years of the previous owner’s death, but there are exceptions depending on your age and relationship with the deceased. Spouses who inherit an IRA have options, as do beneficiaries who meet certain criteria.

The inherited IRA 10-year rule was part of the SECURE Act. Before then, a non-spouse beneficiary could take required minimum distributions (RMDs) based on the heir’s life expectancy. Following the SECURE Act, funds from an inherited IRA must be withdrawn over ten years. This eliminated the ability of the beneficiary to keep the retirement account funded for the rest of their life and gain the advantages of the long-term tax-free growth of the IRA.

Does the 10-year rule apply to you? The exceptions to the 10-year rule are:

• The IRA owner’s surviving spouse
• The IRA owner’s minor child
• An individual who is not more than 10 years younger than the IRA owner
• A disabled or chronically ill person, as determined by IRS rules.

If a minor child inherits the IRA, the 10-year clock starts ticking once they reach the legal age of adulthood.

Heirs may take the entire amount from the IRA, but it will be taxable as regular income.

For spouses, there are decisions to make. The surviving spouse may open and transfer the assets into an inherited IRA and then withdraw funds during the 10-year timeframe. If the decedent was taking RMDs from a traditional IRA at the time of their passing, the spouse would need to take the RMD during the year of death if it wasn’t already taken. Otherwise, the spouse can wait until they reach the required age to take RMDs from the account.

If funds are taken from your own IRA before 59 ½, there is a 10% penalty plus taxes on the withdrawals. However, a surviving spouse under age 59 ½ could open an inherited IRA and start taking distributions.

There are strategies to optimize the 10-year rule. One strategy is for the owner to name a Charitable Remainder Trust as a beneficiary for your IRA. A CRT is an irrevocable trust that generates an income stream for the beneficiary with the remainder of the assets after the trust term. The trust term can be longer than the 10-year inherited IRA limit, allowing the beneficiary to stretch tax benefits longer.

An estate planning attorney can help you navigate the complex rules about inherited IRAs and determine how to use traditional and Roth IRAs to manage your tax liability.

Reference: U.S. News & World Report (Dec. 18, 2023) “What Is the Inherited IRA 10-Year Rule?”

How to Get Your Estate Plan Started

“You’re not too young, you do have enough assets and don’t you want to make things easier for your loved ones after you pass away?”

Estate planning involves deciding what you want to occur when you die and which of your trusted contacts may be empowered to manage those assets when you aren’t here. However, there are many misconceptions about estate planning, reports a recent article from Kiplinger, “It’s Estate Planning Week: Here’s How to Get Started.” Let’s set the record straight.

An estate plan can be as complicated or simple as you wish. For some, an estate plan may require a last will and testament to describe how you want your assets distributed upon death. If you have a large estate with many assets and complex goals, you could use a trust or a combination of trusts to administer assets after death.

For example, if you want to leave money for grandchildren but don’t want them to be able to access the funds until they reach a certain age or milestone, you could have a specific trust created for each beneficiary with descriptive language to explain what has to happen before the assets are distributed.

For married spouses, an estate plan typically leaves the assets to the surviving spouse and then, at the second spouse’s passing, includes instructions on who receives the assets. If there are no children, or you don’t want family members to inherit assets, you can use your estate plan to designate a charity or charities to receive gifts of cash or other assets.

Creating an estate plan involves creating an up-to-date balance sheet listing assets. How much you leave to heirs depends on whether you’ve spent your assets before you die or have significant liabilities.

You’ll need to name trustees to manage the assets if you establish trusts. You’ll also want to name successor trustees who can take over if the original trustee cannot serve. Talk with your trustees and successor trustees to be sure they are willing to take on the responsibility, since they will be in charge of the assets and need to make important financial decisions.

If your estate plan relies on a last will, you’ll need to name an executor who manages the estate, distributes assets, pays taxes and more. This person should be someone you trust implicitly. If you fail to name an executor, the court may appoint a representative.

An estate planning attorney will be familiar with any state-specific estate tax issues as well as federal estate tax issues. You’ll want to include your financial advisor and CPA to ensure that the estate plan works with all aspects of your life.

The estate plan isn’t completed until all documents have been signed and notarized and all assets are titled correctly. If assets are to be placed in a trust, your estate planning attorney will help you title assets to be sure the trust owns them and not your estate. If assets aren’t re-titled correctly, you may lose the benefit of the estate planning process. Check-in with your estate planning attorney every three to five years to be sure your estate plan still works. Family relationships and tax laws change, so estate plans need to be reviewed regularly. For example, the current federal estate tax exemption is $12.92 million for an individual, but unless Congress acts, this will sunset in 2025, when the exemption will revert to $5 million per person.

Reference: Kiplinger (Oct. 16, 2023) “It’s Estate Planning Week: Here’s How to Get Started”

What You Should Know about Inherited IRA

“Navigating the often complex world of inherited individual retirement accounts (IRAs) can be daunting, especially in the wake of losing a loved one.”

Inheriting an Inherited IRA can be even more complicated than the already complex world of inherited Individual Retirement Accounts (IRAs). Understanding the rules and regulations about inheriting an inherited IRA is critical to avoid major tax pitfalls, according to a recent article from yahoo! finance, “What Happens When I inherit an Annuity?”

After the passage of the SECURE Act, the rules concerning inherited IRAs became quite restrictive. Working with an estate planning attorney knowledgeable about IRAs can be the difference between a healthy inheritance or an unexpected huge tax liability.

An inherited IRA is an IRA left to a beneficiary following the death of the original account owner. The beneficiary who inherits the IRA can pass it to a successor beneficiary upon death. This creates the “inheriting an inherited IRA” scenario.

If the line of succession is not set up correctly, there is the potential for inherited assets to go through probate for a judge to rule on the rightful owner.

The original beneficiary is the first person to inherit the IRA. Once they have inherited the account, they may name their successor beneficiary. There are rules for the original beneficiary and the successor beneficiary.

The SECURE Act changed the timeline for inherited IRAs. It eliminated the “stretch” IRA strategy, which allowed beneficiaries to take distributions over their lifetime, stretching out the tax-deferred growth of the IRA over decades. Now, most non-spouse beneficiaries must withdraw all assets from an inherited IRA within ten (10) years of the original account holder’s death. This change presents new implications with regard to taxes, especially if the beneficiary is in their peak earning years.

Inheriting an inherited IRA can involve complex tax rules and pitfalls. There are timelines for taking required withdrawals and zero flexibility for mistakes.

You’ll also need to be sure the inheritance is documented correctly to avoid potential probate.

The rules differ for spouses inheriting an IRA since they shared assets with their deceased spouse. The SECURE Act allows spouses to treat the IRA as their own, providing more flexibility in distributions and potential tax implications.

Understanding the concept of Year of Death Required Distributions is essential. Let’s say the original owner was over a certain age at death. In this situation, a Required Minimum Distribution (RMD) may need to be taken in the year of death, which could impact the heir’s taxes for that year.

Knowing potential tax breaks related to inherited IRAs will also help with financial management. Non-spouse beneficiaries can deduct the estate tax paid on IRA assets when calculating their income tax.

These are complex issues requiring the help of an experienced estate planning attorney. Ideally, the conversation about what happens when you inherit an inherited IRA should occur while creating or revising your estate plan.

Reference: yahoo! finance (Sep. 5, 2023) “What Happens When I inherit an Annuity?”

Do You Need a Revocable Trust?

“One of the most common misconceptions about a last will and testament is that having a will avoids the need for probate court.”

Think of your will as a letter to the court explaining your wishes for property distribution. A revocable trust is one of the easiest ways to pass property to heirs outside of probate, says a recent article from The News-Enterprise, “Revocable trusts provide flexibility in estate planning.” Revocable trusts are popular tools to avoid probate, protecting the decedent and beneficiaries.

Another benefit of revocable trusts? The trustee who manages the trust can work on their own timeline rather than worrying about meeting dates set by the court. In most cases, assets can be distributed much faster through a revocable trust than through a will. However, expediency isn’t always the main reason for a trust. Flexibility on timing is another benefit.

Revocable trusts can be held individually or jointly. This is usually determined by how assets are held before being placed in the trust. A joint trust is the more comfortable approach if all assets are owned jointly. Independent trusts usually work best for couples who prefer to keep assets separate.

Revocable trusts also offer several options for the distribution of property on the death of the first spouse.

The most commonly used option is the transfer of all property to the surviving spouse upon the first spouse’s death. All trust property remains in a “survivor’s trust,” which gives the surviving spouse all access and control, including the right to change beneficiaries. This works best for couples who have been married for a long time and share beneficiaries in common.

For blended families, another option is to split the trust assets upon the death of the first spouse between a survivor’s trust and a decedent’s trust. The surviving spouse retains full control over the survivor’s share of the trust property but becomes a beneficiary of the decedent’s trust. If the surviving spouse’s assets are insufficient, the decedent’s trust can be used for the benefit of the survivor. Nevertheless, the surviving spouse may not change the ultimate beneficiaries of the decedent’s trust.

Another option is to pass all assets completely outside of the control of the surviving spouse upon the first spouse’s death. Assets may pass into a family trust to benefit the spouse and other beneficiaries but at the discretion of a trustee. Alternatively, the assets may pass directly to residuary beneficiaries, with no assets left in trust for the surviving spouse.

This is often used when one spouse is unable to manage their own financial affairs or if one spouse is in a nursing home.

Planning should always be designed for the unique needs of each family. If the wish is to avoid probate and protect spouses and beneficiaries, revocable trusts offer many useful options.

Reference: The News-Enterprise (Aug. 5, 2023) “Revocable trusts provide flexibility in estate planning”

Married Couples can Use Estate Tax Exemptions in Estate Planning

“A primary goal of most married couples when contemplating basic estate planning documents is to ensure that the surviving spouse, and commonly, the couple's children and grandchildren, are supported financially.”

Estate tax avoidance and mitigation are central considerations for financial security for surviving spouses. According to a recent article from The National Law Review, “Basic Estate Tax Planning for Married Couples: Opportunities For Use Of Estate Tax Exemptions,” the first spouse may leave property of unlimited value to the surviving spouse without incurring any estate tax upon the death of the first spouse. This unlimited marital deduction shields assets from estate taxes and helps support the surviving spouse. Assets can be distributed directly to the surviving spouse or through an indirect transfer to a qualifying trust for the surviving spouse’s benefit.

Most couples use trusts for asset protection, most commonly for the preservation of assets for children from a prior marriage and asset management help for the surviving spouse. The marital deduction is a valuable estate tax avoidance tool for married couples.

However, estate tax law is not generous for non-spouse beneficiaries. Legislation passed in 2013 allowed individuals to leave assets totaling $5 million in value (indexed to inflation since 2011) to non-spouse, non-charitable beneficiaries and then doubled this amount following the Tax Cuts and Jobs Act to $10 million. However, if additional legislation is not passed before the sunset date of January 1, 2026, this amount will be cut in half.

In 2013, Congress made the portability of a spouse’s estate tax exemption permanent. This allows the surviving spouse to capture and use the first decedent spouse’s remaining estate tax exemption and the surviving spouse’s own exemption. To capture this estate tax exemption, an estate tax return must be filed in a timely manner after the death of the first spouse.

If spouses have a total estate exceeding available exemptions, they may use what is known as the “Credit Shelter Trust Planning” or “Optimal Marital Deduction Planning.” A trust is established, funded with assets of the first spouse to die, to use the spouse’s estate tax exemption. Assets in the trust are available to the surviving spouse for life but are not included in the survivor’s taxable estate upon their death. The goal benefits the surviving spouse and reduces any estate tax to maximize benefits for the children and grandchildren.

Another frequently used tool is the “disclaimer” plan, which allows the survivor to move certain assets into a trust for the survivor’s benefit rather than receiving assets directly. For married couples with estates valued at less than their available estate tax exemptions, a disclaimer plan provides the “all to spouse” plan and the option to implement a tax-advantaged trust. All assets are left to the survivor; then, based on the value of the first spouse’s estate, the surviving spouse may choose to disclaim the first spouse’s assets and divert them to a tax-advantaged trust.

It must be noted that there is no “one-size-fits-all” plan for married couples who wish to care for their surviving spouse, children, and grandchildren. It’s important to understand the basic estate tax avoidance or mitigation tools to create an estate plan to consider the couple’s planning goals and values. An experienced estate planning attorney can create a comprehensive estate plan to suit each family’s needs.

Reference: The National Law Review (June 24, 2023) “Basic Estate Tax Planning for Married Couples: Opportunities For Use Of Estate Tax Exemptions”

Estate Planning for Today’s Modern Blended Family

“The modern blended family has far more needs when it comes to estate planning than a traditional family. Here are some challenges, tips and solutions.”

If you grew up watching Leave it to Beaver, you saw a family with traditional estate planning goals and challenges, as compared to today’s Modern Family, with stepparents, stepchildren and a host of dynamics which calls for a vastly different estate plan, reports a recent article, “Comparing Estate Planning: ‘Leave It to Beaver’ vs. ‘Modern Family’” from Kiplinger.

Planning goals require identifying overall goals and concerns and identifying heirs. Are you concerned about divorce or lawsuit protection? What do your family members need? Probate will subject your estate and family to higher costs, delays and the public nature of a formal court proceeding where heirs’ names, inheritances and asset values become public information.

Failing to identify heirs or beneficiaries and their needs clearly is especially important for a blended family. This could result in your state's probate code becoming the guiding law, which may not align with your wishes. The probate code is less likely to identify desired heirs of a blended family.

Estate planning for a blended family must also address who will be authorized to make decisions in the event of incapacity to make medical decisions. Failing to do so could result in a family member whom you might not have named making important decisions on your behalf. An estate plan should include healthcare proxy and HIPAA release forms.

When correctly drafted and executed, trusts can help avoid probate. Here’s an example of how this can go wrong. A woman’s husband died. He had handled the couple’s finances. All of the assets were in his name alone. In this case, California, the probate code limited the distribution to one-third for the surviving spouse and two-thirds for the children, including one minor child. The surviving spouse felt she was a 50% owner of the combined assets and fully expected to receive control and ownership of all assets upon his death. Having assets go to children was unexpected, created financial difficulties and strained the family relationship.

Do you live in a community property state? In these states, property for married couples is characterized as community (jointly owned) or separate (owned by one spouse). Care needs to be taken by both spouses as to how properties, assets and accounts are titled.

Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington are community property states. Property rights established in a community property state can still have consequences for those moving to states that don’t have community property rights. If that describes your situation, a meeting with an estate planning attorney should take place to discuss the implications for your estate property distribution.

An estate plan should be created to provide for the surviving spouse and the deceased spouse’s children. In traditional families, all assets usually go to the surviving spouse with few restrictions. In the case of second marriages, there are ways to provide for the surviving spouse. One way is to retain the deceased spouse’s assets in a trust. The trust provides for all the income to the spouse and discretionary principal distributions. A Qualified Terminal Interest Trust (QTIP) may permit the trust to qualify for the marital deduction for estate tax purposes.

The selection of trustees is an important decision for a blended family. In this case, it may be better to have a professional fiduciary who is not emotionally engaged with one side or another to alleviate any emotional baggage.

An experienced estate planning attorney will be able to guide the family through creating a comprehensive estate plan to assuage concerns about children from prior marriages receiving their rightful inheritance, while protecting the surviving spouse’s quality of life.

Reference: Kiplinger (June 12, 2023) “Comparing Estate Planning: ‘Leave It to Beaver’ vs. ‘Modern Family’”

What is the “I Love You” Last Will and Testament?

“An ‘I Love You Will’ works great as long as everything goes as planned. However, there are three reasons that kind of will may not love you back.”

Having a will and an estate plan created is one of the most loving things a couple can do for each other and all the people and causes in your life, says a recent article, “I Love You, But Your ‘I Love You Will’ Needs to Go” from Kiplinger. However, if what you and your loved one have in mind is an “I love you will,” you need to know that this isn’t always the best option. Sometimes, the unintended consequences can send a very different message.

I Love You Wills refer to reciprocal last wills created by spouses where each leaves the entire estate to the other spouse outright. The remaining assets pass to their mutual children upon the surviving spouse's death.

These types of wills are usually created for couples making their first wills, those with simple estates and those who want to have a will, any will, in place before a significant life event, like getting married, having their first child or going on a long trip. Others opt for I Love You Wills because they want to avoid thinking or talking about death and creating a will and would rather have the simplest plan.

However, an I Love You Will can be an “I don’t care so much” will in some circumstances.

Control on the death of the survivor. Nothing stops the surviving spouse from changing their will after the first spouse’s death. They can easily reduce or outright eliminate any gifts to children of the marriage in favor of a new spouse, new children, stepchildren, or any other person named in the original will.

One way to address this is to create a trust for the surviving spouse. An independent trustee or co-trustee would then serve with the surviving spouse and assess distribution decisions. This makes it harder to disinherit those included in the original will, as long as they are named trust beneficiaries.

Lost opportunity for a ‘primary’ charitable bequest. Philanthropically minded people may have wished to leave something to a charity. It may be better to include a bequest in their own will, rather than waiting for both spouses to pass. A will simply stating that assets pass on the first spouse’s death to the survivor could easily cause any charitable bequests to evaporate.

No protection for incapacity. If your spouse was incapacitated when you died and couldn’t manage their financial affairs, who would be in charge of their legal, financial and health care? What would happen to their inheritance? Most people would prefer to choose the person in charge of their property on behalf of their spouse, rather than a stranger named guardian or conservator by the court. A will leaving all assets outright to the surviving spouse doesn’t offer any protection for incapacity.

While having a simple will is better than no will, having a comprehensive estate plan addressing inheritance and incapacity issues is the best plan for the future. Speak with an experienced estate planning attorney to create your estate plan to protect you, your spouse and your family.

Reference: Kiplinger (May 2, 2023) “I Love You, But Your ‘I Love You Will’ Needs to Go”