Warren Kozak’s April 27, 2018, Wall Street Journal article titled “You Can Limit Death’s Financial Costs, if Not the Emotional Ones” features several excellent points – what the author describes as his own “real rookie mistakes that led to hours of extra work and substantial fees” and which inspired him to write the article to save other people from his mistakes.

Here is just one important issue from his article:

Issue One: When we opened those checking and savings accounts, we never named beneficiaries. I had assumed, incorrectly, that our accounts would simply transfer to the other in case of death. The banker who opened the accounts never suggested otherwise. With a named beneficiary, her accounts would have simply been folded into mine. Instead, I had to hire a lawyer—at $465 an hour—to petition the court to name me as the executor of her estate. I needed this power to transfer her accounts. Filing costs in New York City for the necessary document was $1,286. The running bill for the lawyer stands at $7,402.00, and I expect it to rise. [In California, the costs could be even higher — MM.]

I also needed the documents for the companies that managed her retirement accounts and a mutual fund, because, as at the bank, we never named a beneficiary. By the way, this paperwork also required signature guarantees or a notary seal, which can take up an afternoon.

These are just some of the seemingly “simple” money matters that can cause trouble and expense for your intended beneficiaries if estate planning and documentation is not done correctly.

Have questions on estate planning? Contact Mitchell R Miller.