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I Don’t Have Enough Assets to Need a Will...

No one enjoys contemplating death, but if you do not take action while you are living, your estate will be distributed “by default” pursuant to the terms of the applicable State statute or code. That means that you will not be able to designate who you would like to act as the “personal representative” (a/k/a “executor”) of your estate, and more importantly, you will not be able to dictate how your assets will be distributed. Simply telling people how you would like certain items to pass, or even writing down your desires, without following the proper formalities has no legal significance, in most instances.

In addition to providing you an opportunity to designate who will administer your probate estate, and how your assets will be distributed, a Will can also designate who you would like to be the guardian of your minor children, and who will be the Trustee of the assets they (or your grandchildren, etc.) receive pursuant to your Will.

Wills are also used in conjunction with other more powerful estate planning tools, such as Living Trusts and insurance-related trusts. Wills, in and of themselves, are not always the best estate planning instruments available, as there are costs associated with probating estates, and estate/inheritance taxes. However, Wills are undoubtedly preferable to the “default” of dying without a Will, or other estate planning instruments in place.

Living Trusts can be used to help reduce or eliminate the costs (and time) associated with probating an estate, and may also be structured to help minimize estate tax. Trusts are also helpful for people who own assets in more than one state. In the absence of a properly drafted living trust, such a person’s estate may have to be probated in multiple states!

We are all familiar with the saying that the only sure things in life are Death and Taxes, so why not do what you can to address both while you are able?