Unfortunately, Smith suffers a stroke and undergoes lengthy period of convalescence, including a stay in a nursing home. The expenses require the daughter, now acting through power of attorney, to liquidate one of the smaller CD's, and to liquidate the larger CD to cash, of which she spends ten thousand dollars. Assuming the only assets remaining at Smith's death are the checking account, which is now worth only approximately 15 thousand dollars, and the remaining CD which is worth ten thousand dollars, you can see how the POD failed to effectuate her wishes. The checking account is divided equally between the children thousand dollars each Widow Smith probably Tods Ferrari Women assumed like many people that the checking account will only have a nominal amount of money in the account, which may not be true as the family deals with medical or other crises. Therefore instead of the oldest daughter receiving twenty five thousand dollars, she receives only five thousand.
One of the other children receives fifteen thousand dollars. It is obvious the results were not in keeping with the intentions of Widow Smith.An Attorney-in-Fact May Change Your WishesMost people who have utilized direct transfer designations assume that their estate plan is set, and their wishes will be followed. Sadly, nothing could be further from the truth. A direct transfer designation is typically a contractual right, which can be changed by an attorney Tod's Driving Shoe Women -in-fact. Moreover, an asset can be transferred, and the designation "undone" by any person with authority over you or your estate, such as a guardian or conservator. Bottom line? A beneficiary designation is simply not an adequate estate plan for most people.Direct Transfer Designations May Lead to Lawsuits Or DisputesFor all of the foregoing reasons, and countless others, direct transfer designations may cause your estate to be disputed, and may encourage, rather than discourage lawsuits and litigation.
There is no substitute for a carefully considered and well drafted trust to ensure that your wishes are expressed and carried out.Direct Transfer Designations May Facilitate or Encourage GuardianshipsParticularly because they may create expectations Tods Softina Women Shoes in the minds of heirs, and because their use certainly does not discourage, and may encourage disputes, reliance on these in your estate plan might even encourage a guardianship application by an otherwise well-meaning heir as he or she seeks to protect their inheritance from others.Guardianship may be necessitated by assets passing to contingent beneficiaries, as well, such as underage grandchildren. Since the goal of such designations is, in part, avoidance of probate, carefully consider their use in an estate plan. Direct transfer designations, like POD's payable on death designations and TOD's (transfer on death designations, and simple beneficiary designations, are mechanisms by which an account or other asset Tods Driving Shoes For Men 。