Many people are diligent when thinking about what will happen to their assets and real estate after they are no longer with us. While it can be an indelicate topic, some of us are conscientious about doing estate planning that covers all the bases. Sometimes, we have more than we realize, including bank accounts, retirement plans from our jobs, brokerage annuities and college savings plans. All of these should have designated beneficiaries that are current, because if not, our money and things could go to the wrong people.

As time passes, our wishes change. Relationships come and go, we get married, divorced and even have falling-outs with friends and family. There are some common pitfalls it would be worthwhile to specifically outline in order to avoid headaches later.

First, it is beneficial to get advice on what your state of residence laws say regarding one’s spouses. In some states, the spouse automatically is the beneficiary; in others, assets sometimes go to the ex-spouse, which is not what you might want.

Job changes can also affect your pension plans. When you roll over your retirement funds, your beneficiary will no longer have access to them unless you name them on the new account. Perhaps our beneficiary passes before we do. Another caveat is that our financial institution may have changed ownership. In the merging of banks, brokerage firms and mutual funds groups, some institutions get rid of older accounts. This cleans house for them but is very bad for you.

It is advisable not to appoint a minor as a beneficiary, as this could get messy with appointing conservators until the minor comes of age. Another complication could be if your beneficiary becomes disabled, which could affect that person’s �countable resources’ from Social Security or other benefits. In both of these cases, the solution might be to form a trust. A financial planner can advise you on how to do this.

Lastly, think of February 14 as a time to review your beneficiaries and estate planning. You will have received your 1099, so you will be clear as to what your contact information and assets are at your financial institution. There is no better way to show your heirs that you will be giving them a precious gift in your memory for years to come.

Source:Forbes, “The Big Estate-Planning Goof You May Be Making” Harper Willis, Dec. 16, 2013

When the retired president of a local labor union passed away at age 79, he left his entire legacy to his best friend. The recipient of his $250,000 estate, and a house of over 4,000 square feet, will be well-provided for until the end of his life. The aging heir is almost blind, deaf and crippled. He is also a cat.

Along with his adopted brother, the kitty will be cared for by one of the deceased’s daughters, who has moved into the spacious residence to fulfill her father’s wishes. Both house cats, according to the last will and testament of the woman’s father, will stay in the home located in a gated community.

Reportedly, the woman’s brother who took his father’s place as the union’s president, claimed his late father had made up the will several weeks prior to being admitted to the hospital, after being diagnosed with cancer. The lucky cat will stay in his familiar surroundings, the only home he has ever known. The man says his father and the feline spent hours sitting on the sofa, a unique bond forming between them. Family members took the will’s terms in stride and promised to respect the father’s wishes. They speak fondly of their father, calling him an extraordinary individual who had put the well-being of others before his own. He was an exemplary labor leader and had marched for civil rights with Dr. Martin Luther King.

People work a lifetime to acquire wealth. An individual’s final wishes may designate some surprising beneficiaries, but one’s final wishes need to be respected and carried out, regardless of any eccentricities inherent in those decisions. The critical nature of making sure we have our affairs in order cannot be overestimated. The late labor president is not the first to prefer his pet over people when designating the heir of his choice. One Italian heiress left $13 million to her cat, and in 2007, Leona Helmsley left her Maltese $12 million. It is, after all, a right we have strived for our entire lives. Attorneys can help with the creation of such wills and ensure these important estate documents are carried out to the letter.

Source: commercialappeal.com, “Man’s bequest of home, $250,000 ensures cushy life for feline beneficiaries” No author given, Nov. 23, 2013