These can be disastrous in an estate plan. Consider the following example:Widow Smith has three children and three CD's. Two CD's are worth ten thousand dollars, but the third is worth twenty five thousand dollars. Smith's oldest daughter lives very near, is often helpful in Smith's day-to-day activities, and is Smith's designated attorney-in-fact. Smith makes the larger CD payable upon death POD to the oldest daughter, but makes the others payable to the other children. 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, Tod's Mens Moccasin Shoes 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 Widow Smith probably 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 Tod's Womens Loafers 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-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 Tod's Gommini Loafers 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 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 Tod's Moccasin Women's Gommino 。