Barnes Lipscomb & Stewart PLLC

What’s the Best Way to Sell an Inherited Estate to an Heir?

“We have a situation where both of my in-laws passed away in the last several years. My wife was the daughter and she and her brother are the executors to the last of my in-laws to pass away.”

An estate includes a small house appraised at $220,000, which the estate owns, and the family is trying to determine the best way to transfer the home to a 30-year-old adult son. The article, “Parents seek best option to sell inherited estate to adult son” from msn.com, offers a few different options.

One option is to have the son purchase the home from the estate directly. Another is having the parents buy the house and rent it to him, with the end goal of the son buying the home when he is in a better financial position to purchase the house.

The home is currently in a trust, which was done to make it easier for the parents or any other heirs to sell or transfer ownership of the home.

The property can remain in the trust, but the estate or the in-laws do not own it. Instead, it is owned by the beneficiaries of the trust.

The date the surviving in-law spouse died matters. Let’s say the mother-in-law was the last to die, and she died in 2022. If the property was worth $100,000 at the time of her death and its value is now $220,000, the sale to the son would trigger a tax on the $120,000 profit.

Ordinarily, suppose the property is sold within a year of the death of the property owner. In that case, the value of the property at the time of death is assumed to be identical to the amount of the sale, and there are no federal taxes to pay on the sale, as there is no profit.

What about having the son buy the property? If he can qualify for a mortgage and buy the home for the appraised amount of $220,000, the trust will likely be able to avoid any taxes. This is especially true if the date of the mother-in-law’s death was within the last year or if there is documentation showing the home had a $220,000 value at the time of her death.

What if the son can’t qualify for a mortgage, and the parents decide to rent the property to him? The property would become an investment. The wife and brother will enjoy the tax benefits of depreciation, be able to deduct real estate taxes, deduct other expenses and take the rent as income. If and when the son does buy the home, the wife and her brother will have to pay taxes on the profit from the sale of the home—assuming the house continues to appreciate in value—and will have to repay the depreciation benefit received when they owned the home as an investment property.

One thing to be explored is whether the parents or the deceased in-laws have any income or estate tax issues. Under current federal estate tax laws, as long as the estate is below the $12,900,000 exemption, there would be no federal estate taxes to pay. But some states have a state estate tax or other fees on assets left in an estate. An experienced estate planning attorney will be able to help with this.

Regardless of how the parents decide to manage this transaction, having an experienced attorney to draft the legal paperwork will be important. Everything must be carefully documented so all beneficiaries can be confident that the property transfer was done correctly.

Reference: msn.com (Aug. 10, 2023) “Parents seek best option to sell inherited estate to adult son”

Minimize Family Feuds about Your Inheritance

“The distribution of wealth among beneficiaries through your final will and testament is often a complex and sensitive issue, one that can potentially spark conflicts and legal challenges among family members.”

Your last will and testament is the document used to spell out exactly how you want your assets distributed after your death. Keeping it up to date and aligned with your state’s laws can prevent estate battles among family members. A recent article from The Motley Fool, “Where There’s A Will, There’s a Way. How You Can Avoid Conflict When Divvying Up Your Estate,” provides the details.

The article advises hiring an experienced estate planning attorney to create an up-to-date and legally valid will. You’ll want someone familiar with your state's legal nuances and who knows how the local probate courts work.

Your will is also used to name the executor of your estate, who will administer your wishes. If you have minor children, the will is used to designate a guardian for your children.

Communication with your loved ones about your intentions will give them time to process your wishes and could reduce the risk of any will contests. Share your plans with immediate family members and key beneficiaries. The same goes for any changes to the estate plan during your lifetime.

Transparency includes ensuring everyone knows who has possession of the signed, legal, and final version of this vital estate planning document. Your executor or estate planning attorney may possess the will, but others should know where it is being kept.

Typically, a will must be filed with the county probate court within ten to thirty days of death.

Your estate plan also includes beneficiary designations on any bank accounts, investment accounts, and insurance policies. They could be mentioned in your will, but the beneficiary designation directs who receives these assets.

Assets with beneficiary designations don’t go through probate; instead, they go directly to the beneficiary. Review them annually and update them after any significant life events like birth, marriage, divorce, etc.

Estate planning is a highly personal and ongoing process. It is essential to seek guidance from experienced estate planning attorneys to ensure your estate plan reflects your wishes and confirms your state’s law concerning inheritance. Leave a legacy of love, not conflict.

Reference: The Motley Fool (Aug. 6, 2023) “Where There’s A Will, There’s a Way. How You Can Avoid Conflict When Divvying Up Your Estate”

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”

When Is a Child Not A Descendant?

“Wills and trusts, instead of designating a specific person to inherit, often name a group or class of people such as your ‘children,’ ‘issue’ or your ‘descendants.’”

Not using specific names and terms open to definition could significantly impact who might inherit from your estate or trust. There are situations where some people may choose to deliberately restrict or expand the definition of the group, which might be included in these definitions, explains the article “Who Is Your Descendant: Intentional Limitations Or Broadening Of Definitions In Your Will Or Trust” from Forbes. For some people, creating a new role of a special trust protector who holds a limited or special power of appointment to determine who should be included or removed from the definition of “issue” or descendant is worth considering.

What might arise if the wish only considers children descendants if they belong to a particular faith? Is this type of legal restriction permitted? Clauses limiting heirs to members of a particular faith or a sect within the faith may raise questions about the constitutionality of the clause. Potential heirs excluded under such provisions have argued that a religious restriction on marriage violates constitutional safeguards under the Fourteenth Amendment protecting the right to marry.

Courts have held clauses determining if potential beneficiaries qualify for distributions based on religious criteria enforceable, if the potential beneficiaries have no vested interest in the assets. Another court upheld the provisions of a will conditioning bequests to their sons as long as they married women of a particular faith.

These decisions are narrowly tailored to the specific fact patterns of the cases, since individuals are generally allowed to disinherit an heir with the exception of a spousal elective share or a community property interest. The courts have reasoned that the restriction is not on the heir to marry but on the right of the testator to bequeath property as they wish.

An alternative approach is to create a single trust for all heirs mandating the funds in the trust be used for the cost of religious education, attending religious summer camps, taking relevant religious studies, religious institutional membership, etc. The trust could use the assets to encourage religious observance. However, it may only partially address the question. What about the remainder of the assets—should it be used for all heirs regardless of religious affiliations?

An estate plan compliant with Islamic law may involve a different determination of who is a descendant. The Sharia laws of inheritance are similar to the intestacy statute. One-third of the estate may be distributed as the decedent wishes. However, the remainder must be distributed as mandated under Islamic law. The residuary inheritance shares after the first third are restricted to Muslim heirs. Additional laws prescribe specified shares of the estate to be distributed to certain heirs, depending upon which heirs are living at the moment of the decedent’s death.

Suppose you or a family member is lesbian, gay, bisexual, transgender, or queer (LGBTQ). The law may not address the unique considerations regarding who may be considered a descendent. Special steps may be needed to carry out your wishes as to who your descendants are. What if you view a particular child as your own, but share no genetic material with a child? Children may be adopted or born through surrogacy, so neither parent nor only one parent is biologically related to the child. While some states may recognize an equitable parent doctrine, this may be limited and not suffice to protect the testator.

There are many new complexities for determining who is a descendant, and these issues are complicated and evolving. Changing family structures and religious beliefs based on different values all impact estate planning. A special trust protector may make decisions when uncertainty arises from provisions in a will designed to carry out the wishes. This is a relatively new role and not permitted in some states, so speak with your estate planning attorney to protect your wishes and heirs.

Reference: Forbes (Aug. 4, 2023) “Who Is Your Descendant: Intentional Limitations Or Broadening Of Definitions In Your Will Or Trust”

Who Should Be Your Executor?

“The person you have placed in charge of your estate under a Will is called a ‘Personal Representative’ or ‘Executor/Executrix.’”

Most people mistakenly believe they must name their eldest child as their executor, the person in charge of administering their estate. According to the article “Eldest child, best friend, C.P.A.—Who should you put in charge of your estate?” from Coeur d’Alene/Post Falls Press, even people who understand they are not legally required to name their eldest child still think their oldest child is supposed to be their executor.

This may have been a social norm way back when. However, those days are gone. Here is what you should consider when determining who you want to be in charge of your estate.

First, what estate planning documents does the executor need to deal with? An executor is primarily concerned with your Last Will and Testament. This document states what you want to happen to your possessions and assets when you die. It also includes your choice of executor.

Not everyone has a trust. However, you’ll likely rely on a trust if you have assets you don’t want to go through probate. The instructions in the trust have nothing to do with the will. The trustee is in charge of the following the directions in the trust, which spells out exactly what you want to happen with any assets owned by the trust.

Your executor and trustee can be the same person. However, they don’t have to be. They need to be someone you have a high degree of confidence in, capable, self-starting, organized and able to navigate the relationships of the other family members and beneficiaries of your estate.

While your will and trust will have specific language, there are also many things an executor and trustee will need to make discretionary decisions on. For instance, if your executor sells your home to distribute proceeds to named beneficiaries, they’ll decide which realtor to use, what the listing price should be, what offers to consider, which offer to accept, what terms of acceptance should include, etc.

You’ll also need to be confident that the person you name will honor your wishes and do their best to achieve the desired outcomes for the benefit of your heirs. If the executor/trustee is also a beneficiary, they must understand their fiduciary responsibilities. They are responsible for putting the estate and not their own interests first.

They’ll also need to be highly organized and able to handle duties without procrastinating. If they are not, they may decide to retain an estate planning attorney to be organized and manage the details. There’s nothing wrong with doing this. It may be impossible for a layperson to know precisely how to manage an estate and probate in highly complex estates.

Consider all of the people who have an interest in your estate or legal rights to be made aware of its administration. They may include children, stepchildren, non-family member beneficiaries, charities, etc. Your executor may need to deal with all of them.

Finally, be realistic about who you select as an executor and trustee. If they need to work together, do they get along? If you know they haven’t seen eye-to-eye on anything since fifth grade; it’s not likely to change because you’ve given them this responsibility. An estate planning attorney may be a better alternative to avoid family feuds or long-standing battles erupting over your estate.

Reference: Coeur d’Alene/Post Falls Press (Aug. 6, 2023) “Eldest child, best friend, C.P.A.—Who should you put in charge of your estate?”

How to Pass on Family Heirlooms with Fewer Estate Battles

“There are better—and often more creative—ways to plan and divide that can avoid family squabbles over cars, jewelry, furniture and household items.”

Family feuds are more likely over Aunt Josephine’s jewelry than the family home. Putting sticky notes on personal items before you die or expecting heirs to figure things out after you’ve passed often leads to ugly and expensive disputes, says a recent article from The Wall Street Journal, “Pass On Your Heirlooms, Not Family Drama.”

Boomers handling parents’ estates and assessing their personal property are having more conversations around inheritance and heirlooms. However, there are better ways to plan and distribute property to avoid family fights over cars, jewelry, furniture and household items.

The person you name to handle your estate, the executor, typically distributes personal property. Therefore, pick that person with care and clarify how much power they will have. An example of this comes from a police officer in Illinois who has been settling his father’s estate for nearly two years. His father owned more than twelve vehicles, a water-well drill rig and two semitrailers of car parts and guns dating back to the Civil War. He also listed 19 heirs, including stepchildren and friends. He told his son he knew he could handle everyone and the stress of people who “aren’t going to be happy.”

If you want a particular item to go to a specific person, make it clear in your will or trust. Describe the item in great detail and include the name of the person who should get it. A sticky note is easily removed, and just telling someone verbally that you want them to have something isn’t legally binding.

Without clear directions, one family with five siblings used a deck of cards and played high card wins for items more than one sibling wanted. Only some families have the temperament for this method.

In one estate, two sisters wanted the same ring. However, there were no directions from their late parents. An estate settlement officer at their bank had a creative solution: a duplicate ring was made, mixed up with materials from the original ring, and each daughter got one ring.

Ask your estate planning attorney how to address personal heirlooms best. In some states, you can draft a memo listing what you want to give and to whom. It is legally binding, if the memo is incorporated into a will or trust. If not, the personal representative can consider your wishes. Make sure to sign and date any documents you create.

Get heirlooms appraised to decide how to divide items equitably, which to sell and what to donate. If heirs don’t want personal property, they can donate it and use the appraisal to substantiate a tax deduction. Appraisals will also be needed for estate tax and capital gains tax purposes.

Reference: The Wall Street Journal (July 30, 2023) “Pass On Your Heirlooms, Not Family Drama”

Make Power of Attorney Part of Your Estate Plan

“Many people will suffer cognitive decline as they age, and that can seriously impact their ability to manage their assets.”

At some point, it becomes necessary for aging people to hand over control of their finances. One aspect of estate planning is naming an agent or fiduciary who can take control of finances if you become incapacitated or experience significant cognitive decline, explains the article “Don’t Forget to Build This Into Your Retirement and Estate Plans” from yahoo! finance.

A financial agent makes financial decisions with you or on your behalf. The exact nature depends upon your preference. However, most agents act as co-signatories or solely control your financial accounts. A co-signatory means you and the agent must jointly authorize a financial transaction. In contrast, a sole controller means only the agent can authorize financial transactions to and from your accounts.

This is a type of Power of Attorney in which you authorize another person to act on your behalf in a legal capacity. The purpose is to protect your finances against cognitive decline often accompanying aging. When it’s unnoticed, the individual can continue making financial decisions, and they may not always be correct. Cognitive decline is why seniors are so vulnerable to financial exploitation and fraud.

A study from the University of Southern California found that cognitive decline significantly reduces wealth among households whose financial decision-makers experience these declines.

Putting a Power of Attorney in place before it is needed can prevent many issues. Children or another trusted family member are usually selected to serve as agents. The issue of timing is another concern—the agent should be appointed before irreversible mistakes are made. If control of finances is handed over too early, the elderly parent can be forced to live as a competent adult who needs permission to make routine decisions.  However, waiting too long exposes them to financial mistakes.

How should you manage the timing? First, have regular medical checkups with a doctor who can track your mental status over time. Select your agent before issues begin as part of your estate planning. Consider a Springing Power of Attorney, allowing your agent to take charge if a doctor or court declares you unfit. Medical incompetence is a high bar, and financial mistakes can be made long before you meet a doctor’s standard for incapacity.

Another option is speaking with your agent regularly. Ask for their advice and follow it. If you trust them, you can have your estate planning attorney prepare a Power of Attorney form to suit your individual needs. Do you want your agent to manage every aspect of your financial life or focus on day-to-day bill paying? Does your situation require one person to pay bills and another to manage investments?

Cognitive decline impacts many older adults and can expose them to serious financial risk. You can protect yourself from this risk by appointing a trusted agent in a timely manner to manage your legal and financial lives.

Reference: yahoo! finance (July 28, 2023) “Don’t Forget to Build This Into Your Retirement and Estate Plans”

Transferring Property to Heirs? Skip Top Five Mistakes

“Death is inevitable, but dying without an estate plan is not. Estate planning is a must for property owners, no matter how uncomfortable the subject might make you.”

It is not difficult to ensure the smooth transfer of ownership of your property to a spouse, children, or other heirs, as long as you have an estate plan created by an experienced estate planning attorney and know what pitfalls to avoid. Most importantly, says the article “I’m a Financial Planner: Here Are 5 Mistakes You Must Avoid When Transferring Property to Heirs” from GoBankingRates, if you die without a will, your state’s intestate succession or next-of-kin laws will determine who inherits your house if yours was the only name on the deed.

Next-of-kin succession varies by state, but for the most part, the priority order is first the surviving spouse, biological and adopted children, parents, and siblings, followed by grandparents, aunts, uncles, nieces, nephews, cousins and extended family members.

You’ll want to know how your state treats intestate property to avoid unwanted surprises for your family. For instance, in some states, full siblings are prioritized over half-siblings, while in other states, they are treated equally.

The biggest mistake is dying without a will and an updated deed. In some states, the property will need to go through probate if the surviving heir is not in co-ownership of the house, regardless of what’s stated in the will.

The solution is simple. Add an adult child or the person you intend to be your executor to the property's deed via a warranty or quit claim deed. This prevents the family home from going through probate and seamlessly transfers to the individual you want to handle your estate after you’ve passed. In particular, this should be done once one spouse in a joint-owning couple dies.

There are four general types of property ownership. The legal system treats them all differently. They are property with the right of survivorship, property held in a trust, property subject to a will and property for which the spouse does not have a will.

If two spouses purchase and jointly own a property, the right of survivorship dictates that the surviving spouse automatically receives the decedent’s half and becomes the sole owner. This is the simplest and easiest outcome, since it avoids probate and the need to alter the deed. However, it’s not always the case.

A surviving spouse might need to change their deed if a partner dies and the deed didn’t automatically transfer property after death. If only one spouse was on the deed, they may have to go through probate (if there was a will) to transfer the home into the surviving spouse’s name. The spouse may need to file a survivorship affidavit and a copy of the death certificate to ensure that the title is properly in their name.

Should you transfer property while you’re still living? It may solve some problems but create others. If a primary residence is transferred to an adult child and they sell it not as their primary residence, it could lead to a large capital gains tax bill. However, if the child inherits the property after your death, the heir will enjoy a stepped-up tax basis and avoids capital gains taxation.

Before taking any steps to arrange for the transfer of the home after passing, talk with the person or people to make sure they want it and the responsibilities associated with owning a home. This is especially true if there’s more than one heir with different opinions.

If children don’t get along or are in different financial positions, leaving one property for all of them to manage together could lead to family fights. Talk with them before putting your wishes into your estate plan to avoid unnecessary resentment and, in the worst case, litigation.

Reference: GoBankingRates (July 26, 2023) “I’m a Financial Planner: Here Are 5 Mistakes You Must Avoid When Transferring Property to Heirs”

Estate Planning Checklist to Put Affairs in Order

“An estate plan can give you peace of mind that things you value will be distributed according to your wishes when you die.”

Estate planning goals include designating who will receive your property when you die and who will be in charge of your personal, legal, and medical affairs if you become incapacitated. A well-constructed estate plan ensures that heirs receive assets, while managing and minimizing estate taxes, gift taxes and other taxes.

Preparing information for meeting with an experienced estate planning attorney will be easier if you break out the tasks into these seven steps, explains the recent article, “Estate planning checklist: A 7-step guide to getting your affairs in order” from Fox 54.

Create an inventory. Tangible assets include your home and other real estate, vehicles, cars, boats, RVs or motorcycles, coin collections, art, antiques, or other personal possessions. Liabilities also need to be listed. These include mortgages, lines of credit, credit card debt, student loans and any outstanding debts.

Determine the family’s needs. Start by preparing a last will and testament with an experienced estate planning attorney. Next, make sure you have enough life insurance. How much you need depends on whether you are married, if your family’s current lifestyle requires two incomes and if you have dependent children.

Your will is the document used to name a guardian for your minor children, and a backup guardian, in case the primary guardian cannot or will serve. Without a will, including your wishes for a guardian, the court will choose who will raise your children. It might not be the person you would want.

Establish directives. An estate plan may include a trust. With a revocable legal trust, your assets go into the trust, and a trustee manages the assets. If you become incapacitated, the trustee takes charge of the assets and their distribution. When you die, the trust transfers assets to designated beneficiaries, bypassing probate. You can also have your estate planning attorney create an irrevocable trust, which can’t be changed once created.

A medical care directive, also known as a living will, spells out your wishes for medical decisions, if you can’t make those decisions yourself. Depending on your state of residence, these documents may be combined into one, known as an Advance Care Directive.

You’ll need a Power of Attorney to give another person the ability to manage financial affairs if you cannot. A designated agent can pay bills and manage all assets. Your estate planning attorney will help you determine how much power to give your agent. You could give your agent the power to pay bills and manage investments but not to sell your home, for instance.

Review beneficiaries. Most retirement accounts, investment accounts and insurance policies include the option to name beneficiaries who receive assets upon your passing without going through probate. People often forget whom they named on accounts established decades ago. Never leave a beneficiary designation blank. If that happens, the assets will be distributed based on the state’s property distribution laws.

Plan for estate taxes on the federal and state level. Only very large estates are subject to estate taxes on the federal level. If you have an estate exceeding $12.92 million, you may consider a Grantor Retained Annuity Trust, or GRAT, a type of irrevocable trust. Some states have estate taxes, and some states have inheritance taxes.

Speak with professionals. Even simple, straightforward estates benefit from the knowledge of an experienced estate planning attorney who knows the ins and outs of your state’s laws.

Plan to reassess every three to five years. Life changes, and so should your estate plan. Your estate plan must be reviewed when life circumstances change, including marriage, divorce, welcoming a new child to the family, getting a new job, or being terminated. Even if your life doesn’t change, the laws change, and new opportunities for maximizing your estate and minimizing taxes shouldn’t be missed.

Reference: Fox 54 (July 24, 2023) “Estate planning checklist: A 7-step guide to getting your affairs in order”

Where Is the Best Place to Keep Your Will?

“When you fail to plan for your death, your heirs may end up fighting.”

Aretha Franklin may have done the right thing in writing down her wishes.  However, she made a costly mistake resulting in an expensive estate battle over a multimillion-dollar estate, says a recent article from The Washington Post, “Aretha Franklin’s will was in her couch. Here’s where to keep yours.”

Three of her sons battled in court over handwritten wills, one of which was found under her couch cushions. Another was found in a locked cabinet. Her family was put into a pricey, heart-breaking and public battle by failing to be clear about her final wishes and improperly storing the wills. This is not likely the legacy you want to leave.

If you have a will, keep it in a place where it will be secure and easily found. Don’t put it in your bank’s safe deposit box. The bank will seal the box when it learns of your passing, and your executor may need a copy of the will and a court order to open the box. This will add a layer of delay and stress to administering your will. If this is the only option, you may want to add your executor as an owner of the safe deposit box and make sure they have a copy of the key.

What about keeping the will at home? A copy of the will can be kept in a fireproof and waterproof safe.However, be sure that someone else has a duplicate key or combination code. Your executor, personal representative, or another trusted person will need to be able to access the will. The risk here is the possibility of someone intentionally destroying the will, if they are disinherited or think you won’t leave them what they deserve.

Can you leave your will with your estate planning attorney? Creating a duplicate set of original documents, one for you to keep at home and another for your estate planning attorney, is a good option. If you choose this route, make sure the family knows the name of the attorney who has the will. If the practice closes, your heirs may need help tracking down the original will.

In some jurisdictions, you can store your original last will with the court. You give your court a sealed will for a one-time fee. The will can then only be released to you or the person you designate in writing. Remember, the will becomes a public document after you die as part of the probate process.

Wills can also be stored online. However, most states don’t yet recognize electronic wills, so your executor would need to have the originally signed copy, even if you have one stored in the cloud. Remember, no matter how secure a site is, even the Pentagon was hacked. Your will could be compromised in a data breach.

Wherever you store your will, estate planning attorneys often recommend leaving a letter of instruction to serve several purposes, including letting family members know your will exists and where it is stored.

To make things easier for your family during a difficult time, put together a binder and include a letter with a list of important information. The list should include assets, names and contact information for the professionals they’ll need to know, including your estate planning attorney, financial advisor and CPA.

When you update your estate planning documents, which should be done every three to five years, or when there is a trigger event in your life (birth, death, divorce), destroy any old wills. Your estate planning attorney will add a provision saying the new will supersedes any previous versions.

If you don’t have a will, state law will dictate how your property will be distributed, which may not be what you want. Known as dying “intestate,” your assets could go to a relative you haven’t seen in decades or people you don’t know or like. Your children, siblings, or parents may not inherit your property, and fighting will likely occur, especially if significant sums of money are involved.

Having a will and making sure people know where it is doesn’t always ensure that there won’t be a battle over your estate. However, it may prevent a war.

Reference: The Washington Post (July 14, 2023) “Aretha Franklin’s will was in her couch. Here’s where to keep yours.”