the topic i will be discussing today is whether a person or a couple should make
a will
the short answer is yes
before i discuss specific situations let me state a few things in the hope of
clearing up some misconceptions
first
the law of wills is state specific
that is each state has its own set of laws governing who can make a will
and the formalities one must comply with in order to make a valid will
one that the court
will enforce
second generally a person who wants to make a will needs to be eighteen years old and
of sound mind
which means that the person has to know that they are making a will
that they know the nature and extent of the assets they own
and that they know the natural objects of their bounty
in other words
you have to know what you are doing and why
a written and signed document
is required in almost all but a few special cases
and most states require
that two other people also sign the will as witnesses
some states do not require witnesses as long as the document is signed by the
person making the will known as the testator
and the material portions of the will are in the testator's handwriting
the main reason to make a will is to make sure that upon your death
your property goes to those persons you want your property to go to
a will can accomplish that objective and do so in a legally accepted manner
if you do not have a will then you die intestate
and the law of the state you live in will step in
and make the decision for you
about how your property will be distributed and to whom
again each state has its own rules
and each person's family situation is different
in another presentation
i discuss the general rules of intestacy
so i will leave that issue for now
there are other reasons to make a will
and they are as varied as each families dynamics
providing for children
especially minor children
providing for partners
providing for aged parents
minimizing taxes
selecting fiduciaries to handle your affairs
selecting guardians to raise your minor children
and making sure that there is an orderly process to reach your
distribution goals
are but a few of the many other reasons
let me give you three typical scenarios
first a young unmarried person
just starting out in his or her career
second a recently divorced parent of two young children
and finally
an older couple with grown children
who have started their own families
first the young unmarried person
just starting out in your career you might feel that you do not have enough
assets to bother with making a will
that may be true
but even if it is things could change quickly
you could inherit money from a parent or a grandparent
you could get injured and receive money either in a lawsuit or as a settlement
regardless you have your own ideas about how your property whatever the value
should be distributed upon your death
everything to you partner
if you have one
some to your parents
some to your brothers or sisters
or a favorite niece or nephew
how about to a favorite charity
and if you have pets who will take over their care
without a will your preferred beneficiaries may or may not receive
your property when you die
and with a will
you choose an executor or executrix
someone you trust
to make sure your testamentary plan is carried out
let's consider another example
the recently divorced parent of two young children
in this situation
your primary goal will probably be insuring that your children are taken
care of if you pass away
for you there are two major concerns
first who will be the guardian of your children
that is who would you want to raise your children if you pass away
and you're ex spouse is either passed away is unfit to raise the children
or simply does not desire to do so
an elderly parent
a sister in a faraway state
a successful sibling who is married and has children of his own or her own
in a will
you choose who will be the guardian of your children
while your choice is not absolutely binding on the probate court
it will be given great deference
and it would be a good idea to select an
alternate guardian
in case your first choice of guardian is unable to take on the role of guardian
second how will your property be distributed
this situation also requires careful thought and planning
and may involve providing money to the guardian to help pay for the cost of
raising your children
and even setting up trusts for things like their college education
and finally
the older couple
with grown children
who have children of their own
will there be enough money to ensure that the surviving spouse can live
comfortably
what happens to the estate
when the second spouse dies to whom should the property go the wealthy and
successful daughter
the son struggling to raise a family with a spouse
siblings in need of financial support
or specific grandchildren
what about grandchildren yet to be born
and what about planning for medicaid eligibility and long-term care
finally what about estate taxes
for those fortunate to have had financial success
the list of issues to be addressed goes on and on
whatever your current situation
it is probably a very good idea to consider making a will
at a minimum
making a will gives you some peace of mind
knowing that if anything should happen to you
your wishes upon your death will be honored