When we prepare our will or trust, or when we are called upon to distribute the assets of a loved one who has passed away,  we think about the physical and financial property.  Many people prepare an attachment to their wills that describes who they would like to receive their jewelry and special household or personal items such as artwork and family heirlooms.  We might also prepare a list of all of our bank accounts, brokerage accounts, stocks and other financial assets.  If called upon to settle the estate of a loved one, we know we should look through a wallet or the mail to identify all of their credit cards, and we know how to check with the county recorder to see if there is a mortgage on any property. 

Now that we are well into the 21st century, we need to think about our digital estates, as well.   Photos, which would have been in albums (or shoeboxes) in years past  may now be stored only on our computers, or possibly on websites such as “Shutterfly.”  In addition to our Visa card, we may also have a paypal account, and, if we sell items (for example on E-bay) as well as purchase with it, there may be a positive balance.  If someone is called upon to run our business, the books may only appear on QuickBooks, or even in a “cloud” accounting program.  How will somoeone know whether you have any of these items, and wherer to look for them if you do?  Will they know your passwords so they can get into them? 

Phoenix, Arizona Attorney Rex Anderson has developed the Digital Asset Questionnaire to help you document your Digital Estate and provide guidance to those who may have to access it, whether an emergency should come up when you are out of town, or after you have died.   This inventory of your digital property is just as important to your estate planning as identifying your life insurance beneficiaries or the personal representative of your will.

I’ve written about the importance of wills and powers of attorney before, but almost every week there’s something in the news that reminds me again why you should get your intentions down on paper. Just this morning, I read about a recently-deceased attorney (whom you would think would have known better)  in a Philadelphia law firm whose parents and same-sex partner are fighting over her profit-sharing account.   

The owners of profit-sharing accounts, IRAs, 401(ks), brokerage accounts and similar financial instruments can simply designate a beneficiary, and a contingent beneficiary, by signing the forms provided by the holder of the account.  You don’t need a notary,  a witness, or an attorney to help you do this, and you don’t even have to tell the beneficiary (or the person you are not choosing) if you think that would be a difficult subject.   If you don’t, the account holder may look to the person’s will – if she had one –  or they may follow their own, internal policy for how such funds will be distributed upon the owner’s death.

The attorney in this article was under the age of 40, so we can understand why she may not have been thinking about what would happen after she died.   Unfortunately, we don’t have to look too far to realize that accidents and illnesses can befall anyone, at any age.  Give yourself the peace of mind of knowing that the loved ones that you choose will not only inherit your legacy, but will do so without an argument.

A client recently asked me what she can do to make sure that no one fights over her will after she is gone.  While this woman’s estate is not large, she had worked hard all her life to build a nest egg to see her through her old age and leave a small legacy for her family.  Whatever the amount, she does not want it to be squandered to pay legal bills or to create bad feelings.

In this day and age, it’s impossible to predict what people might argue – or sue – about.  However, the clearer you are about your intentions, the less likely it is that they will be disputed.

The woman who asked this question had written her will to have her estate divided equally among her children, some of whom were born after the will was written.  In order to prevent any dispute about whether she might have meant only the children who had been born when the will was written, she decided to sign a Codicil (an amendment to a will) stating that she wants her estate divided among all of her children who are living at the time of her death.

Questions about the intent of the testator (the person who wrote the will) can also arise if a beneficiary named in a will has died before the testator.  It is a good idea to identify at least one contingency beneficiary if that should happen.  My client wants her estate divided among her children living at the time of her death, so if any of her children die before she does, their portion would be divided among their living siblings.  Other individuals might want to leave a deceased child’s estate to the children or other heirs of that deceased child.   There is no right or wrong choice, but it is important that your will clearly expresses the choice you have made.

You should also clearly document your intention to exclude someone from your will who might expect a gift, or is in the same class (such as siblings or children) as others who are receiving gifts.  For example, you might state that you have 3 sisters: Anna, Betty and Cathy.  You are leaving $1,000 to Anna and Betty, but nothing to Cathy.  This would make it impossible for Cathy to claim that her omission was simply an oversight.

Some of the synonyms for the word ‘will’ are ‘choice’ and ‘preference.’ Using your Will to make your choices clear can give your family the added gift of a clear understanding of your preferences.