E290 Professional Executor vs Beneficiary Designations for Solo Agers

<p>A few Solo Agers have asked if they can use beneficiary designations instead of a traditional estate plan. We’ll explain some pros and cons of beneficiary designations, and why a professional executor may work better.</p> <h2>Why traditional estate planning doesn't work for Solo Agers</h2> <p><img class="aligncenter size-medium wp-image-42950" src= "https://anthonyspark.com/wp-content/uploads/2022/11/Why-traditional-estate-planning-doesnt-work-for-solo-agers-300x169.jpg" alt="Why traditional estate planning doesn't work for solo agers" width="300" height="169" /></p> <p>Most traditional estate plans are centered around a friend or family acting as your executor to manage probate. Solo Agers often don’t have an assumed family member to serve in this role. Sometimes a Solo Ager has a friend or sibling, but for several reasons, it wouldn’t work out for those loved ones to serve. For example, friends and siblings may be the same age or older than the Solo Ager. There also may not be the same level of trust that one would have with a spouse. Or maybe the relationships are estranged.</p> <p>For the reasons above, Solo Agers seek to avoid the need for an executor altogether. It’s not hard to blame them. For example, we had a Solo Ager client (no kids, no family, no close friends) who could not get it through to other attorneys that she had no one to appoint. She became so frustrated with their standard advice that she wanted to avoid appointing an executor altogether.</p> <h2>Why Solo Agers like the idea of beneficiary designations</h2> <p><img class="aligncenter size-medium wp-image-42951" src= "https://anthonyspark.com/wp-content/uploads/2022/11/Why-solo-agers-like-the-idea-of-beneficiary-designations-300x169.jpg" alt="Why solo agers like the idea of beneficiary designations" width="300" height="169" /></p> <p>Beneficiary designations go directly to the heirs and “avoid probate.” This is common with life insurance and retirement plans. When someone dies, the beneficiary just fills out and submits claim forms. There