Estate planning is something we often push to the back burner, especially when life is busy and the future seems secure. However, the unexpected can happen, and when it does, the lack of a proper estate plan can turn an already difficult time into an overwhelming nightmare. I'd like to share a story, hoping it serves as a kindly written cautionary tale about the importance of working with an attorney for estate planning.
A person I know, whom I'll call Jane, recently faced a life-changing event. After 15 years of marriage, her husband, John, passed away suddenly. Throughout their marriage, John handled all their financial matters through his premarital accounts, which were held only in his name. Jane, trusting in their partnership, deposited her income into these accounts as well. They both assumed that in the event of his death, she would have seamless access to their funds. Unfortunately, John died intestate—without a will.
Upon his death, Jane expected to be able to access the accounts to cover her living and probate expenses. However, once probate was opened, she faced a harsh reality. Unbeknownst to her, John had named beneficiaries on these accounts. The bank, adhering to its policies, denied Jane access and refused to disclose the beneficiaries’ identities.
This left Jane in a precarious position. She needed the money in these accounts to cover her immediate living expenses and the costs associated with probate. Short of selling her home, she had no other assets to rely on. So, what could Jane do without compromising her fiduciary duty as the Executor (Personal Representative) of John's estate?
The situation is complex, but there are steps Jane could take:
Court Order for Access: Jane could petition the court for an order that allows the beneficiaries to access the accounts and, potentially, give her a portion of the funds. For example, she could request the equivalent of her income deposits from the six months prior to John’s death. However, this is contingent on the beneficiaries' willingness to cooperate.
Communication with Beneficiaries: Jane could try to guess who the beneficiaries are and discuss the situation with them. If they understand her predicament, they might be willing to assist her voluntarily. They could choose to distribute some funds to her, especially those corresponding to her own income deposits.
Legal Guidance: Consulting with a probate attorney is crucial. A professional can provide tailored advice, ensuring Jane navigates her fiduciary duties correctly while exploring all possible avenues for accessing the funds.
Jane’s story highlights a critical lesson: the importance of estate planning cannot be overstated. Had John worked with a trusts and estates attorney to create a comprehensive estate plan, including a will and joint accounts or clear beneficiary designations with Jane’s knowledge, much of this turmoil could have been avoided.
At Wysocki Law, our trusts and estate attorney works with families to prevent such heart-wrenching situations. We encourage all couples to engage in thorough estate planning, ensuring that both partners are aware of and have access to financial resources. This foresight can provide peace of mind and financial stability during times of loss and transition.
Remember, estate planning isn’t just about distributing assets—it's also about protecting your loved ones from unnecessary hardship. Jane never should have experienced financial hardship during her time of profound grief. Don’t wait for the unexpected. Take proactive steps and work with a trust and estate attorney to secure your family’s future today. Contact us to learn more about how working with an attorney for estate planning can help you create a comprehensive estate plan tailored to your needs.
Comments