Estate planning provides options to determine what works best for you and your heirs and/or beneficiaries. If you do not have a will, your state’s statutes determine how your assets that do not pass by operation of law will be distributed. Unfortunately, you might not agree with that distribution or it might not be advantageous to your estate. Below are some additional reasons why you should have a will, or better yet an estate plan.
Probate
Probate is a legal process that includes proving a will is valid, identifying and inventorying property, appraising the property, paying debts and taxes, and distributing the remaining property pursuant to the will or statute. Generally speaking, probate takes at least a year. By planning in advance, you can take certain steps to transfer your assets outside of probate in addition to planning for estate taxes. It is important to note that there can still be tax liability on your assets not in probate.
Having a will can reduce disputes over your estate. For example, you can include a provision to prevent or minimize individuals contesting your will.
Guardian and/or Conservator
An estate plan is especially important for a parent. A parent appoints a guardian and/or conservator in the will. Planning ahead gives you an opportunity to consider:
- Who should be your child(ren)’s guardian;
- Whether another person should be appointed as conservator; and
- Whether you should set up a trust for your minor child(ren).
Even though this is a difficult decision, it is a decision you will want to make instead of leaving it in the hands of someone else.
Pets
For many pet owners, your pet is a family member. A will enables you to appoint a person you want to take care of your pet in the event of your death. An estate plan allows you to go one step further by establishing a trust funded with a reasonable amount of money to care for your pet after you pass.
Nominating a Personal Representative
To begin the probate process, a personal representative (formerly known as an executor) has to be appointed which can take up to seven days or longer. Having a will gives you the opportunity to nominate the personal representative to administer your estate. Without a will, the court decides who will administer your estate. Additionally, having a will allows the nominated personal representative to carry out your burial instructions before appointment which means you do not have to wait up to a week or longer to be buried.
Life is unexpected. As such, it is better to be prepared with an estate plan that includes a will. To discuss your estate plan, call Watch City Law Offices LLC or send us an email.
Posted: October 11, 2016
The information on this blog is not intended to be and is never intended to be legal advise. Information found on this blog and this site does not establish an attorney-client relationship. Without a formal fee agreement and/or engagement letter signed by both parties, an attorney-client relationship does not exist. Please contact Watch City Law Offices LLC for individual advise based on your own situation.
Any information is subject to change.