February 2024
Lawyer for Life. Keeping your family healthy, wealthy and wise.
 

When it comes to estate planning, one of the most important decisions you'll make is choosing the individuals who will help you manage your affairs when you either lose capacity or pass away. These individuals, often referred to as your “agents”, "personal representatives" and/or "executors," will play a crucial role in ensuring that your wishes are carried out and your assets are distributed according to your plan.

 

Choose Someone You Trust

 

The most important factor in choosing your personal representatives is trust. These individuals will have access to your financial accounts, personal information, and legal documents, so it's crucial that you trust them to act in your best interests, in accordance with your wishes. Consider family members, close friends, or trusted business associates who have a history of being responsible and reliable.

 

Consider Experience and Knowledge

 

Estate planning can be complex, and it's helpful to choose individuals who have some level of experience and knowledge in financial matters, legal issues, or both. This will help ensure that they can effectively manage your affairs and make informed decisions on your behalf.
Three images - elderly couple sitting together on park bench, husband and wife with their daughter smiling at the camera, and a dad and his son looking at a tablet.

Multiple Representatives

 

There are pros and cons to appointing multiple representatives. Depending on the complexity of your estate, you may want to appoint multiple agents. For example, you could choose one individual who is knowledgeable about financial matters and another who is familiar with your personal wishes. This can provide a checks and balances system and ensure that your estate is managed effectively. However, more people makes it more likely that disagreements could take place. Also, coordinating multiple schedules sometimes makes the process move a bit slower. This is something you should discuss with your estate planning attorney, to determine which path is best for your plan.

 

Communicate Your Decision

 

It's important to communicate your decision to your chosen personal representatives and let them know where they can find your estate planning documents, and which professionals to contact upon your incapacity or death. This will ensure that they are prepared to step in and assist you when needed.

 

Consider a Professional Fiduciary

 

If you are unable to find someone you trust or if your estate is particularly complex, you may want to consider appointing a professional fiduciary, such as a trust company, bank, or attorney. Professional fiduciaries are trained and experienced in managing estates and can provide a high level of expertise and neutrality. The downside to this option is that they may charge extra fees to serve as a professional in this role.

 

Update Your Estate Plan Regularly

 

Your life circumstances change over time, and so do the life circumstances for your agents! Your estate plan should mimic that. Review your plan regularly and update it as needed to ensure that your personal representatives are still the right individuals for the job.

Choosing the right people to help with your estate plan is a critical part of ensuring that your wishes are carried out smoothly and efficiently. Take the time to consider your options, communicate your decisions, and regularly review your plan to ensure that your estate is in good hands.
 

In the realm of estate planning, married couples have traditionally used "sweetheart wills" to leave assets to each other. A sweetheart will describes any joint or separate will where spouses leave everything to each other, and then typically to their children, or other joint agreed upon beneficiaries. However, it's essential to consider both the advantages and drawbacks before deciding if a sweetheart will is the right choice for you and your family.
Elderly woman consoling confused looking husband.

Pros

 

  1. Simple & Affordable: Sweetheart wills are relatively simple and cost-effective to create. They provide an uncomplicated framework for couples who wish to leave their assets to each other.

  2. Mutual Trust and Understanding: By creating a joint will, couples demonstrate trust and a shared understanding of their wishes. This can strengthen the bond between partners as they navigate their financial future together.

  3. Streamlined Decision-Making: Sweetheart wills typically simplify decision-making processes for surviving spouses. Assets are transferred smoothly, reducing the potential for legal disputes or family conflicts.

 

Cons

 

  1. Lack of Flexibility: Sweetheart wills may lack the flexibility required to adapt to changing circumstances. Life is dynamic, and a joint will may not account for unforeseen events such as divorce, estrangement, or significant changes in financial situations.

  2. Limited Control: Joint wills can limit an individual's control over their assets after their partner's death. This may be a concern if the surviving spouse wishes to change beneficiaries or modify the distribution of assets.

  3. Potential for Disputes: In some cases, joint wills can lead to disputes between family members, especially if beneficiaries disagree with the distribution outlined in the will. This can strain relationships and lead to legal challenges.
  4. Tax Implications: Depending on the size and nature of the estate, sweetheart wills may not be the most tax-efficient option. Individual circumstances, such as estate tax laws and exemptions, should be carefully considered to minimize tax implications.

In conclusion, while sweetheart wills can be a touching expression of commitment and trust, they are not without their challenges. Couples should carefully weigh the pros and cons, taking into account their unique circumstances, values, and long-term goals. Seeking professional legal advice is crucial to ensuring that the chosen estate planning strategy aligns with individual and shared objectives.
 
Christine C. Weiner