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| ACCIDENTAL DISINHERITANCE When two separate documents treat an asset different ways, the planner is sometimes surprised to learn how the asset actually passes. Most people think that a will is omnipotent ... that the will controls everything. They are often surprised to learn that another document takes precedent over the will. For example, Bill and Ann Anthony are in a second marriage and each has one child by previous marriages. They go to their estate planning lawyer and have her create "Sweet-Heart Wills" for the two of them. The wills basically say that, on the death of one spouse, the assets go to the other spouse. Secondarily, the wills say that, in case of the deaths of both spouses simultaneously, the assets go, half-and-half, to the two children. Each spouse thinks that the children are "protected." When they buy a new house, they put all their assets into it. The real estate lawyer, a different person from the estate planning lawyer, says to them, "You wanted to take title jointly didn't you?" Somewhat confused, they reply in the affirmative. Of course, this means that: "On the death of one spouse, the other gets the house ... and the entire estate." Bill dies. After two years, Ann marries Clyde and puts his name on the deed, "Jointly." Of course this means that: "On the death of one spouse, the other owns the house ... and all of the estate from the first marriage." Ann dies. Clyde owns the house. The two children are "Accidentally Disinherited." Many charitable organizations are, similarly, accidentally disinherited when people include them in a will ... and then proceed to put all their assets into joint ownership. If you want to include our cause in your estate plan, ask your attorney to review all your documents to be sure that "The Foundation" is not accidentally disinherited. |
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