Can Beneficiary Designations and Wills Contradict Each Other in Florida?
Beneficiary designations may not align with Wills, especially since beneficiary designations take precedence over your Last Will and Testament. Because of this potential conflict, it makes sense to carefully review how your beneficiary designations (including POD accounts) interact with your Will. An experienced estate planning attorney in Tampa can review your unique situation.
Why Many Florida Residents Fail to Consider the Long-Term Effects of Beneficiary Designations
One of the most attractive aspects of beneficiary designations is their simplicity. Because of this simplicity, many estate planners are often tempted to create and alter their beneficiary designations with no guidance from attorneys. Simply create a payable-upon-death account, name a beneficiary, fill out the forms, and you have an effective estate planning strategy with relatively little effort.
The only issue is that your Will might not align with your beneficiary designation. Even if the two estate plans did not initially contradict one another, conflicts may arise over time. For example, you may have a new child and leave them $500,000 in cash by altering your Will. If your existing POD account names your first child and you only have $750,000 in cash, there obviously won’t be enough cash to go around.
When a Beneficiary Designation Contradicts a Will, the Beneficiary Designation Takes Precedence
The most important thing to realize in this scenario is that the beneficiary designation “overrides” a Will when the two do not agree. Many people are surprised to hear this, as a Last Will and Testament has a reputation for being a more “official” document. In contrast, a beneficiary designation is a simple form you can fill out without any legal assistance.
What if My Beneficiary Designation Contradicts My Will?
If your Will contradicts your beneficiary designation and you need to adjust your estate plan, the most obvious option is to alter your beneficiary designation. The process is generally faster and cheaper than altering your Will. If you want to alter your Will, you should really obtain legal assistance. You may also need to follow very specific steps to ensure the document remains legally enforceable, including obtaining witnesses and signatures.
That being said, you should still consider speaking with a lawyer if you’re simply altering your beneficiary designation. The fact that these two estate planning documents have already caused issues suggests that you may need a more effective and organized plan going forward. A lawyer can ensure that no further conflicts occur, and they can help you adjust your beneficiary designations effectively.
Can a Seminole Estate Planning Attorney Help Me?
Although it might be tempting to move ahead with beneficiary designations without legal assistance, you should always make sure that each aspect of your estate plan integrates into an effective “whole.” Your estate planning attorney in New Port Richey can help you assess the bigger picture, ensuring that no conflicts occur within your estate plan. Contact Knudsen Law for more information.
Source:
floridabar.org/public/consumer/pamphlet026/
