Estate Planning And Will Preparation: Why You Don’t Want To Die Intestate
You may not spend much time dwelling on what will become of your assets after you die, simply because the possibility of dying before you have an estate plan in place seems so remote. Or you may simply thing that you don't need to spend money having a will drafted because you know that your assets will, by law, be distributed to your heirs. But did you know that if you should die unexpectedly, and it does happen, in spite of your best intentions, and you did not bother with doing some estate planning and will preparation, your assets may not end up with the people for whom you intended them?
Estate planning and will preparation are essential if you wish to control what becomes of your assets. Should you die intestate, or without a will, the distribution of you estate will be done according to the laws in your state, with a very strict order of inheritance. While the order varies depending on the state of your residence at the time of your death, most states will give a percentage of the estate to your spouse and the remainder to your children. If you have neither spouse nor children, your parents, siblings, and then other blood relatives will inherit. But the laws of inheritance are simply your state legislature's best guess on how most people would like their estates to be distributed. They are designed primarily to provide for minor children. But what if you are a major financial support for your aging parents or a disabled sibling? Your dying intestate could mean that they receive none of your estate, even though you sincerely intended to provide for them. Estate planning and will preparation will let you avoid just such tragedies, so that you can determine how your assets are distributed. Your will can be as simple or as complex as needed to provide for your heirs and to avoid any unnecessary taxes. By using a profession to help you with your estate planning and will preparation, you can determine whether testamentary trusts or a pourover will, which will leave some assets to a trust you create during your lifetime, is more appropriate than a regular distribution of your assets among your heirs. If it is your intention in doing estate planning and will preparation to ensure that some of your assets will remain protected from creditors or professionally managed for the benefit of your survivors, having some sort of trust arrangement in you will can achieve your goals. It will also minimize the amount of your estate taxes. Doing estate planning and will preparation will also allow you to choose a a guardian for your minor children if you have survived their other parent; it will let you determine the person to act a your executor; it will allow you to leave assets to friends as well as relatives; and in will, in general, allow you to tailor the disposition of your assets to meet the needs of all those for whom you wish to provide. Isn't the better than letting the state legislature determine their fates? |
