By Jeremy A. Wechsler, Esq.
Investment Advisor Representative
[email protected]
Solid estate planning is a key component of a retirement plan—at Franklin Retirement Solutions, we like to think of retirement planning like a puzzle. If one piece is missing, it throws off the whole plan. Retirement planning means life planning and legacy planning. Because for many of our clients, success isn’t just having enough predictable income for a long retirement—it’s also being able to leave a gift for the next generation (sometimes begrudgingly!).
I practiced estate planning law for over 15 years before moving over to the retirement planning side–I can tell you that most estates are settled without major issues. The vast majority of families work together, follow the wishes of their loved one, and move forward. In fact, if I had to identify the biggest cause of estate disputes, it wouldn’t be a lack of documents—it would be a lack of communication.
That said, estate challenges do happen—and when they do, there are usually warning signs that were overlooked years earlier.
In my experience, problems are more likely to arise when people don’t spend enough time thinking through their plan, fail to update documents as life changes, or simply assume their family will “figure it out.”
Here are a few common situations that can create unnecessary stress:
The Child Nobody Questions… Until Later
Many people name their oldest child or the child who lives closest as Executor. Sometimes that’s the perfect choice. Other times, that person isn’t organized, doesn’t communicate well, or simply doesn’t want the responsibility.
The best Executor isn’t necessarily the oldest child—it’s the person who can handle the job fairly and efficiently. Most importantly, it is the person you trust without reservation.
Estate planning isn’t just putting documents together—it also means sometimes having difficult conversations with the family, so that they understand your wishes and intent, so that surprises will be avoided later. It’s the surprises that usually lead to discontent and distrust amongst heirs.
The Plan That Never Got Updated
Families change. Marriages, divorces, births, deaths, relocations, wealth changes, and changing relationships can all affect an estate plan. Documents that made perfect sense fifteen years ago may not reflect today’s reality. Review your plan every few years to ensure there are no surprises for the next generation.
The Family Home Dilemma
A house is often the most emotional asset in an estate. One child may want to keep it. Another may want to sell it. Another may want to live in it! Real estate can surely complicate matters, and this is where we see disagreements arise. Having a clear direction and family conversations about these possibilities (and about the plan in general) ahead of time can save a great deal of frustration down the road.
The Beneficiary Form That Everyone Forgot About
I’ve seen situations where a will says one thing, but an old beneficiary designation says something completely different. In many cases, the beneficiary designation controls. A quick review every few years can help ensure everything remains coordinated.
In Summary…
The good news is that most estate planning problems are preventable. A thoughtful plan, occasional updates, and a few important conversations can go a long way toward making things easier for the people you care about most.
That’s what estate planning is all about.