Death comes at unexpected times for all people. If you were to die suddenly, do you know for certain precisely who would receive your assets? Additionally, if you have children, do you know for certain whom would take care of them? If you do not know the answers to these questions, you are in the same boat as 59% of all Americans, who according to a recent study by the legal website Findlaw.com, do not have wills. There are multiple reasons why people delay serious estate planning. Commonly these reasons are that they believe they have plenty of time to take care of it later; they believe that their assets are not large enough in order to deserve estate planning; they do not understand what would happen to their assets if they died without a will.
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The truth is that dying without a will in place makes things very unpleasant for your children and extended family. Currently, all fifty states have a plan drawn up and ready to go into effect the moment an individual dies: they’re called “intestate succession” laws, and in the worst scenario, the state simply seizes all of your assets while leaving nothing for your children.
A will also helps you by allowing you to personally choose a representative, or executor, to handle your affairs after you die. The executor is empowered to carry out the instructions that you lay down in your will, which can head off potential quarrels about whom receives what portion of your estate.
Within the will, you can name a guardian for your children. The role and function of the guardian is to raise and look after your children if both you and your spouse were to die within the same time frame. The advantage here is that you can choose who will raise your children yourself instead of the court. In addition, you can structure your estate in such a way that your children will always have enough money while they are underage. Whomever you name as guardian must be willing and able to take up the responsibility, and you must make sure that they are willing and able before you name them as your guardian.
Using the will, you would also be able to set up your estate as a trust for any beneficiaries you wish to name that are minors. The trust can be structured in such a way that the guidelines you establish would provide for them until they reach the age of majority, at which time the inheritance would pass fully into their control. The trustee you name will use the assets that you designate for the benefit of the minors and render them able to handle their affairs themselves once they grow up.
Specific items can also be clearly designated to go to certain people in your will. It is impossible to be certain about this without a legal document.
In cases where the estate is set up as a trust, the will tells the heirs and legal personnel how the trust is to be executed. If your holdings and assets are fairly substantial, it may be in you and your heirs’ best interests to talk to an attorney about setting up a living trust. A living trust offers freedom from probate costs and complete privacy of the legal proceedings at any given time.
When making a will, plan for potential disability, as well. Designate someone as having power-of-attorney who can make medical and legal decisions for you. Write the documents in such a way so that the person can take power-of-attorney only when a doctor certifies that you are disabled.
Relying on an estate planning attorney will save you time and money by making sure the legal documents are valid and tailored in the proper way.