Some of the reasons people use for not having a will include:
- "I don't have much property."
Each of us has property worthy of distribution to someone - an automobile,
bank account, stereo, home computer, furniture, jewelry, paintings,
china, etc. Even if everything were sold at an estate auction, it would
probably yield several thousand dollars that could be useful to your
institution.
- "My property is in joint names.
This is a trap into which many people fall. Having property in joint
name is no excuse for not having a will. In the event of a common disaster,
you will have no distribution plan. Or the other joint tenant could
predecease you. Having everything in joint name is also a bad estate
plan, because the first spouse to die loses the benefit of his or her
lifetime estate tax exemption.
- "My spouse will get everything anyway."
This is an invalid premise. If you die without a will, your children
may share in a major part of the estate. Your spouse may predecease
you, or you may get a divorce. Both of you may die in a common disaster
with the result that everything will be left up to chance. (For example)
Did you know that if you die without a will in Massachusetts, your children
share in the estate? Do you want your 21-year-old college student to
receive a percentage of your estate rather than having it all go to
your spouse?
- "I'm young. I have plenty of time."
A review of the obituaries will show that death is not a state reserved
only for the elderly. Many people in their 40s and 50s and younger die
from all kinds of unexpected accidents and diseases. (The number of
court appointed guardians after 9/11/01 should be a reminder that we're
surrounded by uncertainty.)
- "I'm not married so I don't need a will."
This is all the more reason why you need one. Who knows what haphazard
distribution will result from a distribution under state laws in your
case.
- "My wife and I already split out estates into two revocable trusts.
Everything worthwhile is in the name of either my trust or my wife's
trust and will be distributed according to the terms we have outlined."
Each of you still needs a pour-over will that simply provides for anything
standing in your name alone upon your death to be distributed to your
trust. Then, the trust takes over the distribution plan. It is very
unlikely not to own something outside the revocable trust at death.
Moreover, some people set up living trusts but neglect to fund them.
With a Will |
Without a Will |
- You can direct the distribution of your assets to those you care about
most.
- You can choose a personal representative (executor) who will oversee
the distribution of your assets.
- You avoid unnecessary expenses on the administration of the estate.
- You can provide appropriately for minor children by naming a guardian
or establishing a trust.
- You can provide for family members, friends, or relatives according
to their needs.
- You can save considerable estate tax by utilizing proper estate-planning
techniques.
- You can provide support for charitable causes that have a special
meaning for you.
|
- State intestacy statutes determine the distribution of your property.
- The court appoints an administrator for you.
- Because the administrator is subject to constant court supervision,
the cost of administering the estate may be greater.
- You cannot provide for minors. The court will appoint a guardian
for them, and the guardian will make decisions about a child's care
that you should have made.
- Your heirs will benefit equally by class not necessarily in the proportions
you would have intended.
- Your estate may lose thousands of dollars in needless taxes, because
you did not take advantage of the tax-saving opportunities available
to you.
- You cannot support a charitable cause.
|
Please note, individual
financial circumstances will vary.
The information on this site does
not constitute legal or tax advice.
Donor stories and photographs are
for purposes of illustration only.
As with all tax and estate planning,
please consult your attorney or estate
specialist. All material is copyrighted
and is for viewing purposes only.
Use of this site signifies your agreement
with the
terms
of use. The content in this Planned
Giving section has been developed
for the Foundation of FirstHealth and is owned
by
Future
Focus. Please report any problems
to
section webmaster.