A remarkable percentage of Americans – up to 70% by some estimates – either do not have a will or possess a poorly constructed one. Ignorance is not bliss when comes to estate planning. For parents with minor children without a valid will, the decision as to who would raise your children as legal guardian would be made by a judge! Furthermore, should you die without a valid will, your estate would be subject to intestacy laws and your heirs would lose control over who inherits your estate. For families in second marriages, intestacy or old wills could lead to the unintended disinheritance of loved ones.
A will is a flexible document that accomplishes a number of planning objectives after your death. Including a trust in your will can help protect your spouse and children over long periods of time and lower estate taxes as well.
The legal process of settling your estate is called probate. Ownership of some assets do not pass through probate but by operation of law. Ownership of jointly held assets, for example, can automatically transfer to the surviving co-owner. Similarly, life insurance, IRA and retirement plan accounts use designated beneficiary forms to transfer legal ownership; the beneficiary documents trump the instructions in your will.
Selecting a qualified executor is important because this person or entity is held responsible for settling your estate, transferring ownership of assets, paying taxes, discharging debts, and generally following your will instructions. A surviving spouse is typically not qualified or emotionally prepared to serve as the executor of the spouse’s estate. Appointing a professional executor in your will is the best way to avoid costly probate mistakes.
We work with a number of capable attorneys to whom we can refer you to complete your will and other estate planning documents.
