I Have a Will. Isn’t that Enough?
Sometimes, yes! Most of the time … no.
A will is a necessary part of most estate plans. But your will is typically a very small part of a comprehensive plan. Here are some of the things you should not expect your will to accomplish:
A will won’t keep your family out of court.
In fact, having a stand-alone will actually ensures your family will be in court because your executor will have to record the will and begin a court process known as probate.
During probate, a court oversees the will’s administration, and ensures your assets are distributed according to your wishes, with supervision to handle any disputes.
Like most court proceedings, probate can be time-consuming, costly, and open to the public. Anyone can find out what you own (or don’t own) and who your beneficiaries are and how much they will inherit. Additionally, probate increases the chance that a family member may contest the will, especially if someone is disinherited or if there is not an equal distribution of assets.
If any of your beneficiaries are minors, the court will have to engage in a process of naming a trustee to hold assets for them until they are 18. The person the court chooses may not be the person you would choose if you were able. Further, when the beneficiary turns 18, they will get those assets outright.
Fortunately, probate is completely avoidable. I can help you learn how your assets can pass not through the court system, but in the privacy of an attorney’s office, to those you love.A will cannot dispose of property that you do not own solely
We are talking about assets owned jointly and assets with a right of survivorship—these assets pass automatically to the other individuals who own the property with you or who automatically take title once you die.
Assets with a designated beneficiary, such as life insurance policies, payable-on-death accounts, and retirement accounts are not affected by the existence of a will.
Assets held in trust do not pass through a will either, and are not subject to probate.
A will cannot pass ownership of a pet and money for its care
Animals are considered personal property. While you can leave your animal to someone named in your will, you cannot name a pet as a beneficiary in your will. And while you can also leave someone money to care for your pet, that person is under no obligation to use the money for your pet. In fact, this person could legally keep the money and drop your pet off at a shelter.
A pet trust is the best way to make sure your best friend gets the care it deserves after your death.
A will cannot leave funds for the care of a person with special needs
Planning for the future care of someone with special needs is delicate. The wrong planning vehicle can easily disqualify someone with special needs from receiving the government benefits to which they are entitled—and need. A will should never be used to pass on money to someone with special needs.
A special needs trust is the right planning vehicle to protect money left to someone with special needs, or for their care. These trusts are complicated, and laws governing them vary between states. However, a special needs trust is indispensable when a loved one needs the finances to live a full life without jeopardizing their access to government benefits.
A will cannot reduce estate taxes
If your family has significant wealth, estate planning can reduce your estate liability. However, a will is useless for this purpose.
A trust can reduce or postpone federal estate tax payments.
A will cannot protect you from incapacity
A will only goes into effect when you die. If you become incapacitated and are no longer able to make decisions about your financial, health, or legal needs, your family will have to petition the court to appoint a guardian to handle your affairs if you have only a will.
The court may appoint someone you would not want—or a complete stranger—to make important decisions on your behalf.
Using a trust, you can appoint someone of your choosing to handle your assets if you are unable to do so. Combined with a well-prepared medical power of attorney and living will, a trust can keep your family out of court and conflict while making sure those people making important decisions for you have guidance and know your wishes.
Although wills are easy to prepare, cheap, and readily accessible through online forms, you should always consult with an experienced estate planning attorney before deciding that a will is the only document you need in your estate plan.
I Can Help.
If you are trying to decide whether you need more than just a will to get your estate planning goals accomplished, and to keep your family and assets protected, I can help.
