Author: Beth McDaniel

Reasons to Update Your Will

By Beth A. McDaniel, JD, CELA

 

There are many important reasons to execute a Will, including to nominate a personal representative; nominate a guardian for minor children; establish trusts for minors, disabled beneficiaries, or irresponsible beneficiaries; and to dispose of personal property.

 

It is possible for a properly drafted Will to be ‘evergreen’ and never require updating if it nominates alternative fiduciaries and provides contingencies for deceased beneficiaries. 

Here are 12 reasons a Will should be updated:

  1. There is a change in marital status. If you marry, it is imperative that you update your Will. Otherwise, the law presumes you ‘forgot,’ and requires your spouse to receive the same amount they would have received if you had died without a Will (intestate). This may not have been your intention, especially if it is a second marriage and you and your spouse have taken pains to keep your assets separate. Likewise, Wills should be updated if you divorce.

 

  1. You cohabitate or are in a long-term committed relationship. If you cohabitate or are in a long-term committed relationship, it is important to update your Will to acknowledge the relationship, even if you do not intend to leave something to your partner under that Will. 

 

Note: the best practice is for both partners to also sign an agreement in which each partner waives his or her right to make a claim against the estate of the other.

 

Otherwise, upon your death your partner could make a claim against your estate, claiming that they were in a committed intimate relationship with you and are entitled to a ‘community share’ of your estate. This very well could have been your intention; but sadly, now your partner is left to pursue a claim through litigation.

 

  1. Life Change for Beneficiary. If one of your beneficiaries becomes incarcerated, drug addicted, disabled, or missing. It is important that your Will properly protects their share of your estate and that your intentions are memorialized.

 

  1. Estrangement. If you become estranged from a beneficiary and no longer wish for them to receive anything from your estate or serve as your personal representative.

 

  1. You were estranged but have now reconciled. Likewise, you should update your Will if you have excluded someone from your Will because you were estranged, but now you have reconciled, and you now want to include them. Sadly, sometimes this happens too late, as the individual may no longer has the capacity to execute an updated Will or the new Will does not get signed prior to the individual’s death.

 

  1. Your net worth changes. Washington has estate tax for estates over $2,193 million (2022). If your wealth has increased to over that amount since your Will was executed, it is important to update your Will to do proper estate tax planning.

 

  1. Wish to Change Fiduciaries. You wish to change your personal representative, trustee of any trusts under your Will, or the guardian of minor children you have nominated under your Will.

 

  1. Changes to Distribution of Personal Property. You may like to change how your personal property or assets are allocated/distributed.

 

  1. Add or Remove Bequest. You wish to add or remove a specific bequest to a charity or individual.

 

  1. Disability of Spouse. Your spouse has become disabled.

 

  1. Relocation from another state. You have moved to a different state (Wills are state law specific)

 

  1. Provisions for Pets. You wish to provide for your pets or exclude provisions for pets that you no longer own. 

 

If do not have a Will and need one, or you wish to review your existing Will, please contact our client care coordinator, Margo Passeau, at (425) 296-3121.

 

First Published: October 2022

Financial Abuse – How to prevent it

By Beth A. McDaniel, JD, CELA

 

Aging parents, relatives, friends, and neighbors are all potential victims of financial abuse. Older adults are especially vulnerable due to consequences of the aging process (e.g., cognitive decline, poor physical health, and functional impairment).

Financial abuse of elders is universally recognized as a significant problem that is only going to get worse. Yet, according to the National Adult Protective Services Association, only one in 44 cases of such financial abuse is reported.

 

Here are some ways to help prevent financial abuse of your loved ones:

  1. Encourage continuous, close contact with multiple relatives and friends, and being as active as possible in local communities (e.g., religious organizations, civic organizations, clubs, and hobby groups).
  2. A durable power of attorney, to appoint an agent to assist with finances, and a health care power of attorney, to appoint an agent to assist with medical decisions, are essential. In addition, a revocable living trust can provide another layer of protection by preventing an abuser from accessing financial assets or selling real property.

These documents should be drafted, and regularly reviewed, by a trusted, competent attorney. These documents should also be discussed with trusted family members and friends.

  1. Autopayment of routine bills should be established whenever possible. This helps prevent a caregiver — or anyone else – from writing fraudulent checks and absconding funds. In addition, autopayment helps avoid late payments, late fees, and possible duplicate payments.
  2. Teach elders to not answer their phone if they do not recognize the number. Instead instruct them to have the caller leave a voicemail. Similarly, tell them to avoid responding to any email allegedly originating from a government agency or company threatening them with negative consequences if they do not provide their personal information or some type of payment (e.g., for back taxes or unpaid traffic fines). Inform them that these are phishing emails sent by scammers.
  3. Urge elders to take inventory of — and photograph — their valuables. Tell them that having a record of all their valuables is helpful if a caregiver, repair person, or other service person comes into their home and steals their property. Inform them that items such as jewelry can be easily taken and pawned or sold, and they might not realize for some time that these items were stolen. Let them know that an inventory is helpful for insurance claims.
  4. Encourage elders to develop a buddy system with neighbors who can keep an eye on them and their home. Instruct them to provide their buddies with contact information for their adult children or other responsible adults. This enables the buddies to contact someone if they believe something is amiss.
  5. Advise elders to contact the police if they suspect financial abuse, regardless of the perpetrator. Advise them that financial abuse is not just a civil matter, but also a crime.

 

For more information, or to schedule an appointment, please call 425-251-8880 or email info@bethmcdaniel.com

 

First Published: September 2022