Power of Attorney, Executor, and Agent. Let's look at why this is standard practice and is automated within Encore's software and some considerations for those requesting an alternative.

A Successor Trustee/Executor/Power of Attorney is the person who would control your finances and the administration of your estate if you cannot due to your death, mental incapacity, or voluntary resignation. Generally, you will use the same individual to maintain consistency and avoid unnecessary complications.

Testator- the creator of the will.

Executor- the individual managing your personal assets.

Successor- next in line to fulfill a specific role within your estate plan.

Guardian- the person who will care for dependents, such as children and pets.

Imagine this- You have a will-based estate plan, your brother is your power of attorney- financial, and your sister is your successor executor.

Unfortunately, you were in an accident last month and are currently incapacitated. Your brother is currently serving as your financial power of attorney and just finished deciphering and organizing what bills and policies need to be paid. He also just finished providing the documentation these companies required for him to access your accounts.

Sadly, you passed away today. Now, your sister steps in to act as the executor. She will now need to repeat the process your brother just completed. Uh-oh, she and your brother also have different investment philosophies. She is unhappy with some of his decisions and has some ideas of her own!

The list of possible complications compounds further as you involve more and more people. Unless you have specific circumstances warranting the need for multiple individuals to fulfill these roles, it is generally best for the same person to fill them.

Several common complications arise with this decision. We're not saying this isn't the best choice for you and your spouse. We're simply saying is usually NOT the best option FOR MOST married couples.

Imagine this: your spouse is incapacitated, and their sibling is acting as their financial power of attorney while you are living. If you were not selected as their initial Power of Attorney, what assets are they supposed to manage? What bills are they supposed to pay? Why go through the hassle when someone familiar with the family finances is still capable of doing so?

Now, the inevitable curve ball. You and your spouse have both passed away. You now have two separate executors trying to manage assets. Which, if there are minor children, may require them to work together for a long period of time. Possibly several decades. Will beneficiaries need to visit two executors with requests, questions, and concerns? Will the executors use separate financial advisors with differing custodians?

The list of possible complications compounds further as you involve more and more people. Unless you have specific circumstances warranting the need for individual trusts and differing individuals to fulfill these roles, it is generally best for the same person to fill the roles within a couple's estate plan.

Some examples that might warrant a need for differing individuals.

Most people ask someone who is financially responsible, would handle finances similarly to them, and is generally a good decision-maker.

A will is a written direction controlling the disposition of property at death. The laws of each state set the formal requirements for a legal will.

Most states require:

No will becomes final until the death of the testator, and it may be changed or added to by the testator by drawing a new will or by a “codicil,” which is simply a separately written addition or amendment executed with the same formalities as a will. A will’s terms cannot be changed by writing something in or crossing something out after the will is executed. In fact, writing on the will after its execution may invalidate part of the will or all of it.

If you die without a will (this is called dying “intestate”), your property will be distributed to your heirs according to a formula fixed by law. Usually, your property does not go to the state unless there are absolutely no heirs at law, which is very unlikely. In other words, if you fail to make a will, your state inheritance statute determines who gets your property. The inheritance statute generally contains a rigid formula and makes no exception for those in unusual need.

When there is no will, the court appoints a personal representative, known or unknown to you, to manage your estate. The cost of probate may be greater than if you had completed your estate plan, and the administration of your estate may be subject to greater court supervision.

While any sort of property may be transferred by will, there are some particular interests in property that cannot be willed because the right of the owner terminates automatically upon death, or others have been granted rights in the property by state law. Some examples of these types of property rights or interests are:

Most states will not allow you to intentionally disinherit your spouse without a properly executed marital agreement. Usually, state laws give a surviving spouse a choice to take either the share provided under the will or a portion of your property determined under the state “elective share” statute. This statute uses a formula to calculate the size of the surviving spouse’s elective share, which includes amounts stemming from your jointly held and trust property, life insurance and other non-probate assets. Because this formula is very complicated, it is usually necessary to refer this matter to an attorney with extensive experience in this area of law. Also, if your will was made before the marriage and the will does not either provide for your spouse or show your intention not to provide for your spouse, then generally your spouse would receive the same share of your estate as if you had died without a will, unless provision for the spouse was made or waived in a marital agreement. Encore does not allow for the intentional disinheritance of a spouse. These plans will be disqualified and you will not be able to complete them.

This question is referring to a natural-born adopted child known to you.

No. This is not necessary and can actually cause considerable added expense to the estate. Beneficiaries have certain automatic legal rights in the estate administration process. A bequest of even $1 will give a disgruntled child the opportunity to insert himself into the process, create roadblocks, cause delays, and prevent your other beneficiaries from receiving their distributions promptly.

Encore DOES NOT allow for the intentional disinheritance of a naturally born or adopted child. We do this to protect all parties involved from litigation. You may have this done elsewhere however it is important to nate that the chances of litigation after your passing skyrocket if you have disinherited a child. Therefor these plans will be disqualified from using Encore's services.

One solution is to make them the beneficiary of a specific account upon your passing. This allows you to provide for the child but prevents them from interfering in the administration of your estate and inconveniencing your other beneficiaries.

It is valid until it is changed or revoked in the manner required by law. Your will may be changed as often as you desire while you are sane and not under undue influence, duress or fraud, provided it is changed in the required manner. Changes in circumstances after the execution of the will, such as tax law amendments, birth of children, deaths, marriage, divorce or even a substantial change in the nature or amount of your assets, may raise questions as to the adequacy of your will. All changes require a careful analysis and reconsideration of all the provisions of your will and may make it advisable to change the will to conform to the new situation.

No. If there is property to be administered or taxes to be paid or both, the existence of a will does not increase probate expenses. A will frequently reduces expenses and eliminates uncertainties. However, for most people with a modest amount of savings, a fully funded trust is widely considered to be the best way to eliminate or avoid probate proceedings altogether.

If there is real or personal property to be transferred at your death, the probate court will have jurisdiction to ensure that it is transferred properly, either according to your will or, if there is no will, in accordance with the inheritance (“intestacy”) statute. Thus, even if you have no will, your heirs must go to court to administer your estate, obtain an order determining your legal heirs, or obtain a determination that administration is unnecessary. These procedures are often more expensive than administering your will, since a properly drawn will names the beneficiaries and delineates procedures to simplify the administration process.

Joint tenancies with rights of survivorship can be established when you and one or more people title bank accounts and other assets in multiple names with the intent to have ownership pass directly to the surviving named owners when you die. A “tenancy by the entireties” is much the same but involves only married people. These forms of joint ownership can avoid probate of the account or other asset when you die. While this can be very efficient in some cases, use of joint ownership can be fraught with problems at death and cause more problems than it solves.

Among other unforeseen problems, indiscriminate use of joint ownership can cause an increase in estate taxes over the joint lives of married people, force double probates in the event of simultaneous deaths, create unfairness as to who pays for funeral expenses and claims against you, raise undesired exposure during life to the debts of co-owners, and cause a shortage of funds for payment of estate taxes, which can cause litigation with the taxing authorities.

No. Life insurance is only one kind of property that you may own, and a will is necessary to dispose of other assets that you own at death. If a life insurance policy is payable to an individual, your will has no effect on the proceeds. If the policy is payable to your estate, the disposition of the proceeds may be directed by the will. Life insurance can be useful in providing cash at death for payment of taxes and expenses, but like most strategies for insurance, the careful person will consult a lawyer, a life insurance counselor and a financial adviser. Mistakes in ownership and beneficiary designations in these policies can cause great increases in estate taxes owed.

A trust may be used in addition to a will. This is because a trust can handle only the property that has been put into it. Any property of yours that is not placed in the trust either during life or at death in most instances escapes the control of the trust. It is the will that controls all property in your name at the time of death if the will is drafted properly.

Trusts can be helpful to speed administration and save taxes if they are drafted properly and funded during life with the property intended to be transferred by the trust. Often, however, unfunded or out of date trusts can add to the cost of settling estates, not lower it. It is best practice to regularly review any executed estate plan on a regular basis to ensure it reflects your current wishes and situation.