Common Contingencies Which Must Be Accounted for in a Will

Published on
November 18, 2024
Written by
Angel Murphy, Esq
Category
Estate Planning

A will – or “last will and testament” – is an important legal instrument which allows a person to control how his or her assets are distributed when he or she passes away. A valid last will and testament essentially removes the state from handling a decedent’s estate; if a decedent passes without a will, that person passes away “intestate,” and the state is then compelled to step in and administrate that person’s estate. Developing a will is a wise estate planning decision for many reasons. Most people would much rather control how their estate is distributed as opposed to having this task handled by the state. When the state handles the distribution of an estate, the state handles things in an impersonal, detached, “by the numbers” kind of way, without regard to the preferences and desires of the decedent. Most people want to avoid this scenario and so a will can be a highly valuable tool.

When a person creates a will, they need to think about all sorts of things, including how events may or may not unfold in the future. When a person develops a will, they develop the will in view of how things exist around them at that specific point in time, but part of creating a really effective will involves planning for certain contingencies which may possibly occur in the future. If a person doesn’t account for certain contingencies, then his or her estate may be handled in a way which would be contrary to his or her true desires.

Let’s look at a couple of common contingencies which should be accounted for in a Maryland will.

Contingency #1: The Premature Passing of Specific Beneficiaries

When a person creates a last will and testament, the creator must identify specific beneficiaries. These beneficiaries are the persons who will inherit certain portions of the decedent’s estate. Unlike the state’s intestacy laws, which are essentially just based on degrees of kinship, a will creator has the power to distribute portions of his or her estate to whomever the creator chooses. But, when the creator identifies beneficiaries, the creator should consider the contingency that beneficiaries may pass prematurely.

If an identified beneficiary passes prior to the death of the will creator, the will should account for this contingency and identify a secondary or backup beneficiary. The language might read something along the lines of “in the event that beneficiary A passes before the will creator passes, the assets intended for beneficiary A shall go to beneficiary B.” Obviously, a will can be amended or updated prior to the passing of the creator. But, in some cases, that doesn’t happen, and the creator passes before an update can be made. Then, the assets go to a place which wasn’t intended by the will creator.

Contingency #2: The Unexpected Change in the Value of the Decedent’s Estate

Another contingency which should be properly accounted for is the unexpected or unplanned change in the value of the decedent’s estate. Often, a will creator possesses assets, such as real estate and corporate stock, which fluctuate in value across time. The will creator needs to account for these possible fluctuations in value by developing appropriate language in the will. A piece of real estate, for example, might be worth twice as much when a will creator passes away as compared to when the will itself was developed. When this situation occurs, the will creator would often prefer that the estate be handled differently. The will creator might include language along the lines of “the real estate identified as Lot A shall be sold and the proceeds divided between beneficiaries B and C, as long as the proceeds of the sale don’t exceed $250,000. If the sale generates proceeds in excess of $250,000, then the amount over $250,000 shall go to beneficiary D.”

There are other contingencies which must be accounted for to create a good last will & testament, but these are just two of the more common contingencies. In the future, we will come back and discuss other contingencies which might happen.

Contact the Murphy Law Firm for More Information

If readers want more information on developing a workable last will and testament, intestacy laws in Maryland, or on other estate planning topics, contact one of the attorneys at the Murphy Law Firm today by calling 240-219-5243

Angel Murphy

Personable. Passionate. Persistent.

last will and testament | estate planning | Maryland law | intestacy | beneficiary contingencies | estate distribution | will creation | estate value fluctuations | real estate assets | asset distribution | backup beneficiary | legal planning | unexpected changes | testator wishes | estate administration | asset management | will amendments | contingency planning | probate process | Maryland wills | legal advice

Subscribe to our newsletter

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Articles & Resources