Retirees Be Warned: Doing These Things In Your Will Could Cost Your Family

Retirees find themselves mulling over many important financial decisions on a regular basis. Developing a dynamic and frugal drawdown strategy to support the competing demands of retirement cash flow and portfolio stability stands front and center. But retirees also need to think about their legacy. Writing a will allows you to dictate exactly what you want to happen with the things you leave behind. It also limits the frustration that can dominate the probate process, which becomes even more demanding for those who die without a will. It's advisable to create a will as early as you can, but by the time you get to retirement age, it becomes a necessity. Naturally, failing to create a legal document to pass on your last wishes to loved ones is a big mistake, but even those with a will can fall victim to some easy pitfalls.

For one, depending on the state you call home, your will can become public record after it's filed, meaning sensitive information like Social Security numbers or account details contained within the document are out there for others to find. Another issue comes in the form of lax revision practices. Failing to reevaluate your will during times of transition can leave it outdated and difficult to fully execute: For instance, you may have a long-deceased relative still listed as a beneficiary. These and other woes can burden your family with additional costs and make it harder to manage your final affairs.

Two issues in particular frequently make their way into the will execution process. Retirees looking to please their children may name all of them as executors instead of trusting the responsibility to just one. The executor of a will has the responsibility of carrying out the wishes established in a will and isn't a deciding voice all on their own. However, there are times when important decisions must be made, and if more than one person is authorized to manage the distribution of assets, it can make for a combative time that drags out much longer than necessary. Multiple executors can strain relationships and break down the fabric of a healthy, cordial family unit, even without major disagreements about how to split large or complicated assets like a family home or an art collection.

Another issue can arise when a testator seeks to disinherit a family member. Some retirees may leave nothing, or a small, token amount to a family member they've had a falling out with. However, cutting someone out of the will demands precision and strategic guile. Some experts suggest leaving a bit more than a token value to make them disinterested in contesting the will and creating pain for everyone else. Alternatively, if you really do want to leave nothing for a would-be beneficiary, you'll need to provide a detailed explanation rationalizing their exclusion. This makes it harder for them to claim you weren't of sound mind when making the revision during a potential challenge, streamlining the inheritance process for others.