Recently, we discussed common contingencies which those creating a will should take account of before everything is settled. We mentioned that, in addition to those contingencies referenced in that piece, more contingencies would follow in the future. In this post, we will go over two additional contingencies which creators should seriously consider prior to signing off on their will.
The primary purpose of a will is to express the true desires of the will creator, which means that all aspects of the creator’s estate be disposed of according the creator’s wishes. If a creator doesn’t account properly for a certain unexpected event or possibility, then there is always a chance that a portion of the creator’s estate may be distributed in an undesirable fashion. Hence, to develop an optimal will, the creator needs to consider not only present circumstances, but also potential circumstances which may possibly unfold.
We will directly carry on from the last piece, and so the next two contingencies are numbered accordingly:
Contingency #3: Putting Assets in a Trust Until a Beneficiary Reaches a Certain Age
This one is important, because people generally don’t the idea of a relatively young beneficiary receiving a substantial portion of money or other assets before they are sufficiently mature. In many instances, beneficiaries who are too young end up squandering whatever assets they receive, something which the will creator likely wouldn’t have approved of.
There are several ways to account for this contingency of a beneficiary receiving assets before he or she is mature enough to use the assets responsibly. One way is to include a provision stating that, if the decedent passes away when the intended beneficiary is not of a certain age – 21 or 25 years old, for example – then the assets which would go to that beneficiary will be placed into a trust until such time that the beneficiary reaches that age. The language might read as follows: “if beneficiary A is not at least 25 years of age at the time of the decedent’s passing, then the assets which would go to beneficiary A shall be placed into a trust and held until such time that (he or she) reaches 25 years of age.”
Another way to account for the possibility of an immature beneficiary receiving assets is to predetermine how assets may be used. So, for example, the creator may include a provision which states that assets which go to a certain beneficiary may only be used for educational purposes.
Contingency #4: Removing a Beneficiary in the Event of Specific Behaviors
Many things can happen in between the creation of a will and the passing of the will creator. One of the things which can happen is that relationships can evolve and change, not just with respect to the creator himself or herself, but also among the future beneficiaries. In many cases, will creators include provisions which specify that relationships between beneficiaries must be kept intact in order for those beneficiaries to receive assets, and indicate alternate or back up beneficiaries in the event that those relationships fall apart.
Will creators also need to recall the relationships between executors and beneficiaries too, and account for any possible communication issues between executors and beneficiaries. In some cases, for various reasons, executors will fail to contact intended beneficiaries due to personal issues, something which creators need to be aware of.
Contact the Murphy Law Firm Today for Additional Information
Readers who want more information on creating a will, estate planning in general, or another matter, contact one of the estate planning attorneys at the Murphy Law Firm today by calling 240-219-5243.