Signing a will can create a satisfying sense of having checked an important box. But an estate plan does not necessarily stop at the document that names beneficiaries after death. Other legal and financial arrangements may determine who can manage assets during incapacity, who receives certain accounts and how property passes to loved ones.
For New Hampshire residents, these three situations may signal that a will alone does not cover the full picture.
1. You could become unable to manage your affairs
A will generally addresses what happens after death. It does not give someone authority to manage finances or property if the person becomes incapacitated during life.
A New Hampshire durable power of attorney can name an agent to act on another person’s behalf. Under state law, a power of attorney is generally durable unless the document says that incapacity terminates it. The document can also grant specific powers, including certain authority involving trusts, gifts, beneficiary designations and rights of survivorship.
2. Some assets have their own beneficiary designations
A will does not necessarily control every asset after death. Life insurance policies, retirement plans, annuities and accounts with payable-on-death designations can use beneficiary designations to determine who receives those assets.
That makes it important to review beneficiary information alongside a will. A major life event, such as marriage, divorce or the birth of a child, may create a reason to revisit those designations.
3. Your estate needs more detailed planning
Some families may benefit from a trust that provides instructions for managing and distributing property. New Hampshire’s Trust Code sets requirements for creating a trust and governs matters such as trustee duties and beneficiary interests.
New Hampshire also allows qualifying real estate owners to use a transfer-on-death deed, which can provide another way to plan for the transfer of real property.
Look beyond the will
The strongest estate plan is not necessarily the one with the most documents. It is the one in which the documents, accounts and property arrangements reflect the same intentions. A will may establish an important foundation, while other tools address circumstances the will cannot.
An estate planning attorney can review the full picture and explain which options may fit a person’s circumstances under New Hampshire law.
