When it comes to estate planning or taking care of a loved one’s estate after they have passed away, surprises are usually unwelcome. The following are five mishaps that arise far too frequently in the estate settlement area. Being aware of these may help when considering your own estate planning and its future administration.

Credit Cards: If your spouse applied for a credit card and added you as an additional signer, should your spouse die before you, the card will be cancelled almost immediately upon his death. Imagine being on the phone with the funeral home making arrangements only to have your credit card payment declined. Absolutely an unwelcome surprise while in the midst of grief. Obtain a credit card in your own name so you can avoid this unpleasant situation.

Safe Deposit Boxes: Bank safe deposit boxes can be tricky. If they are in the name of your trust, once your trustee has copies of your death certificate, they can access the box and gather needed documents. If it is not in your trust name, your trustee or personal representative will need to wait 45 days before the bank will allow them entry to your box. We had a client pass away recently and were aware that she wanted to be cremated. We made the arrangements and paid the cremation fees. Some 40-plus days later, we accessed her safe deposit box only to find a fully paid cremation plan. We are now attempting to get a refund for the prepaid plan.

The same goes for funeral instructions — do not leave them in your box! They need to be immediately available to your personal representative so they can make sure your services or celebration of life is everything you want it to be.

Finally, make sure someone knows you have a safe deposit box. Recently, a woman passed away unexpectedly and at a young age. Her family could not locate a will at her home, nor did they find a safe deposit box key or other evidence indicating the existence of a box. Her estate was administered as though she died without a will. In this case, all her assets were to go to a sibling. The probate proceeded and the administrator of the estate was preparing to distribute everything to the sibling when a notification came from the bank regarding rent due on the box. Yep, you guessed it, her will was “safely” tucked inside her safe deposit box. Her will indicated she wanted everything to go to a charity and the family is now involved in court proceedings to “re-probate” the estate.

If the estate assets had already been distributed, the administrator would have the unwelcome task of demanding assets back from the beneficiary — a sad and sometimes difficult job.

Credit Locks: This is more of a lifetime situation rather then an at death one but worth mentioning. We know that putting a lock on our credit reports is a good idea to us protect from scammers and identity theft. However, it is essential you safeguard the PIN to unlock your credit, if needed. Say you have lost some mental capacity and need to move to a senior home so you can have more support. The home may need to run a credit check and, if your credit is locked, they are barred from doing so. Also, if you lose the PIN or cannot recall it, it is almost impossible to unlock access to your credit reports.

Power of Attorney documents: Did you know that when you die, a power of attorney document is immediately void? Many people believe that the nice person who is helping pay bills or otherwise assisting with finances will be able to “wrap things up” when you die. Not true. The POA is void at death and, absent other documents like a will or a trust, your trusted friend will not have any authority to take care of things.

Surprise Appointments: Finally, if you have put together a beautiful estate plan naming your cousin “Freddy” as your trustee or executor, please tell Freddy. Better yet, discuss your plans with him and make sure he knows where your documents and financial information can be found. A surprise appointment can easily result in delays, unnecessary legal fees and outcomes that are not optimal.

The estate administration field is ever changing due to new laws and bank regulations, so mishaps are not uncommon. Being aware of these five common “surprises” can, hopefully, smooth the waters.

Liza Horvath has over 30 years of experience in the estate planning and trust fields and is the president of Monterey Trust Management, a financial and trust Management Company. This is not intended to be legal or tax advice. If you have a question call (831) 646-5262 or email liza@montereytrust.com