Many retirees take comfort in knowing they have a will in place. It feels very responsible. Organized. final.
But according to veteran legal and estate planning experts, having a will is not the same as having a good estate plan, and in some cases, a will that is outdated or too rigid can actually cause stress, conflict, and unnecessary expense to your loved ones.
Here are three things retirees should strongly consider removing from their wills, and what steps they should take.
One of the biggest mistakes retirees make is relying on a will as their primary planning document.
“As an elder law and estate planning attorney who works with retirees every day, I see this all the time,” says Evan H. Farr, a certified elder law attorney and retirement planner. Farr Law Firm.
“Many retirees think having a will means they avoid chaos, when in fact they ensure unnecessary court-supervised proceedings.”
The issue is probate, Farr said. Wills must go through probate, which Farr said is public, expensive and time-consuming. This means:
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Anyone can view the details of your estate.
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Asset transfers can be delayed for months or longer.
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Family disputes are more likely to occur.
Living trusts, whether revocable or irrevocable, avoid probate altogether. Not so with a will.
“Relying solely on a will creates privacy issues, delays the transfer of assets and often increases family conflict,” Farr said.
What to consider: A living trust can control how and when assets are distributed while keeping the estate private and reducing administrative headaches for heirs.
Read more: Three reasons why retiring baby boomers shouldn’t give their children an inheritance
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Many wills contain instructions that appear fair and simple on paper, such as granting an estate outright to a child at a certain age.
But this simplicity can backfire.
“A fixed age distribution reduces the ability to protect assets,” Farr said. “Once assets are completely transferred, they are vulnerable to divorce, creditors, lawsuits, poor financial decisions, and even substance abuse or mental health issues.”
In other words, what feels generous today may inadvertently put your legacy at serious risk tomorrow.
Sean Patrick Malloy, founder and managing partner of Malloy Law Offices, believes similar problems arise when retirees fail to revisit old terms.
“A bequest that seemed appropriate ten or fifteen years ago could deceive a surviving spouse or force a retiree to sell property that they want to keep in the family,” he said.
He recalled a case where a fixed cash gift left heirs with no choice but to sell real estate to pay for the expenses.
What to consider: Using a trust structure can allow assets to be distributed gradually, conditionally, or with added protection while still respecting your intentions.
Another common question is not what the will says; It doesn’t belong there anymore.
“I’ve seen some wills that still leave assets to a former spouse or an estranged family member,” despite retirement accounts and life insurance listing different beneficiaries, Malloy said.
This creates confusion and often leads to fights. Assets that designate beneficiaries are outside the scope of a will, but when documents conflict, families may end up litigating to resolve the issue.
Malloy also warns against setting out detailed personal property distributions directly in a will.
“Naming names of who acquired furniture, jewelry or collectibles can fall into outdated assumptions,” he said. “I prefer to use a separate, revocable memorandum of wishes that can be updated without rewriting the will.”
What to consider:
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Regularly review beneficiary designations on retirement accounts and insurance policies.
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Move personal property descriptions into separate, easily updated documents.
If your goal is to make your family’s life easier, removing certain regulations is just as important as adding new ones, Malloy added. Therefore, perhaps the most damaging omission is not what is written in the will. This is something completely missing.
“Few people think about long-term care planning when they face retirement,” Farr said. “A will does absolutely nothing to protect assets from nursing home or long-term care expenses.”
Even a revocable living trust does not provide protection if long-term care expenses arise. Farr often sees clients draft carefully crafted wills, only to have their estates completely depleted before the will is effective.
“As a result, not planning for long-term care is often the biggest way retirees undermine their estate plans,” he said.
What to consider: Options like long-term care insurance or a Medicaid Asset Protection Trust (a specific type of irrevocable trust) may help protect assets, depending on your situation and timing.
A Will is designed to make your loved ones’ lives easier. But when it’s outdated, inflexible, or incomplete, it can have the opposite effect.
“Often, we can best maintain this goal by eliminating rigid and outdated regulations,” Malloy said.
If you are retired or approaching retirement, now is the time to review your will, re-evaluate your broader estate plan and ensure it reflects your current reality.
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This article originally appeared on GOBankingRates.com: Retirees: 3 Things You Should Immediately Remove from Your Will