When you create an estate plan, you’re doing more than just passing on your belongings. You’re also deciding who should manage your affairs, take care of loved ones, and carry out your wishes. These designations deserve careful thought. The right people and the right instructions can help prevent confusion, conflict, and delays down the line. At Surprenant, Beneski & Nunes, P.C., we can work with you to make sure every name and role in your estate plan reflects your values, your priorities, and your goals.
Choosing Primary and Contingent Beneficiaries
Your estate plan may include a will, one or more trusts, and accounts with direct beneficiary designations like life insurance, retirement plans, or investment portfolios. For each of these, you’ll need to name beneficiaries—the people or charities who will receive the assets.
However, designating a single individual is only part of the process. It’s just as important to name one or more contingent beneficiaries in case the primary choice is unable to accept the inheritance. Without a backup, your assets could end up being distributed in a way you didn’t intend.
Keep in mind that beneficiary designations on financial accounts generally override anything stated in your will or trust. That’s why it’s important to make sure all of your documents are consistent. If you’ve gone through a life change—such as divorce, marriage, or the birth of a child—it’s a good time to review and update your beneficiary forms to reflect your current wishes.
Designating Fiduciaries: Personal Representatives, Trustees, and Agents
Another key part of your estate plan involves choosing the people who will act on your behalf when the time comes. These are your fiduciaries, such as the personal representative of your will, the trustee of a trust, or the agent under a power of attorney or health care proxy.
These roles carry real responsibility—you want to choose someone dependable, organized, and capable of making decisions under pressure. This might be a family member, a close friend, or even a professional.
We often recommend naming backups for each role in case your primary choice is unwilling or unable to serve. For more complex or emotionally charged situations, you might consider naming co-trustees or co-personal representatives to balance family interests and ease the burden on any one person.
Above all, make sure you’ve had conversations with the people you choose. They should know what the role involves and feel comfortable taking it on when the time comes.
Planning for What-Ifs
Life doesn’t always go according to plan. That’s why a strong estate plan includes contingencies. What if a beneficiary passes away before you do? What if your chosen personal representative moves away, becomes ill, or declines the appointment?
We encourage you to think through different scenarios and include fallback provisions. For example, instead of naming just one person, you might say, “to my daughter, Jane, or if she predeceases me, to her children in equal shares.” You can also give your trustee or personal representative flexibility to respond to unforeseen events through well-drafted instructions in your documents.
Preparing for the what-ifs can help your loved ones avoid delays and confusion down the line.
Family Dynamics and Communication
It’s not always easy to make these decisions when emotions and family history are involved. Some parents want to treat children equally, while others want to account for individual needs, abilities, or financial situations. Both approaches are valid, but clarity is key.
Sometimes it helps to have a conversation with your loved ones about your choices. This doesn’t mean you need to explain every decision, but talking through your intentions can reduce the risk of conflict later.
We’ve seen how simple misunderstandings can lead to hurt feelings—or even legal disputes. A thoughtful conversation now may help preserve family harmony in the future.
Tax and Legal Implications
The way you structure your designations can affect how much of your estate ends up in your beneficiaries’ hands. For instance, naming someone outright as a beneficiary may lead to a taxable event, while placing assets in a trust might offer more protection and tax efficiency.
Massachusetts has a relatively low estate tax threshold compared to federal law, so thoughtful planning can help minimize the impact. We can walk you through how your choices could affect taxes or trigger probate, and help you explore alternatives if needed.
Revisit, Revise, and Rely on Guidance
Your estate plan isn’t set in stone. It should evolve as your life does. Marriage, divorce, births, deaths, or even a shift in relationships may prompt a change in designations. Reviewing your plan every few years—or sooner if something changes—is a smart way to keep everything on track.
If you’re unsure about a designation or haven’t reviewed your plan in a while, contact Surprenant, Beneski & Nunes, P.C. We’ll help you take the next step.