|
|
Wills 101: Everything You Need to
Know but Don't Want to Think About
Courtesy of the National
Association of Estate Planners and Councils
You know you should have a will. You may think about it from time to
time, and maybe you've even put it on your "to-do" list. But if you're
like most people, you've never actually gotten around to having a will
drawn up. Estate planning professionals estimate that a whopping 70
percent of Americans don't have a will.
There are many reasons people put off estate planning. One reason is
simply that no one likes to think about their own mortality. But the
truth is, there is no way to avoid the fact that you won't be able to
dictate how your assets are divided up from beyond the grave --unless
you have an estate plan. "Every family should have an estate plan to
protect assets like a home, insurance proceeds, family heirlooms and
more," says Michael W. Halloran, a director with the National
Association of Estate Planners and Councils.
Another reason people never get around to drawing up a will is the
belief that they don't have enough assets to need one. "People
mistakenly think that only the wealthy need estate planning," says
Halloran. "But everyone needs a will, unless they are happy with the one
the state has provided for them."
Halloran is referring to the fact that if an individual dies without a
will, or "intestate," the state decides what happens to their property.
You can make the process much easier on your family by putting your
intentions in writing, either in a basic will or a will plus a living
trust. A will can specify who gets what after you die, while a living
trust can also help you avoid probate, reduce estate taxes or set up
long-term property management. Both are part of a good estate plan.
The average probate can go on for months before the beneficiaries get
anything. Not to mention that probate eats into their inheritance, since
lawyer's fees and other court costs will be taken out of your assets.
Property transferred into a living trust before you die doesn't go
through probate. Instead, the trustee you have appointed merely
transfers ownership to the beneficiaries you named in the trust.
If privacy is a big concern for you, living trusts also offer the
advantage of being shielded from public disclosure. While a will becomes
a matter of public record, the terms of a living trust are not required
to be made public.
Even if you establish a living trust, you'll still want to have a will
as well. If you don't have a will, any property that isn't included in
your trust will go to your relatives in an order determined by state
law, and this may not be the distribution you would have wanted.
For example, state law usually does not recognize the different needs of
your children nor their stage in life. Most families have children with
unequal needs, capabilities and requirements for care based on their
age, health, education and other factors. For example, if you have minor
or disabled children, do you want the probate judge appointing their
guardian?
It may all sound overwhelming at first, but there are many professionals
trained and qualified to help you make your estate planning effective.
Check with your state or local bar association for a local Certified
Estate Planning attorney, or try the state CPA association. The National
Association of Estate Planners and Councils (NAEPC) offers a list of
members who have earned the special designation AEP (Accredited Estate
Planner).
Estate planning is appropriate for any stage of life -- if you don't
prepare for the inevitable, you may create needless heartache and loss
for those left behind. Your estate plan should allow you to give what
you want to whom you want to receive it, the way you want them to
receive it and when you want them to receive it. Your estate plan should
save every tax dollar, professional fee and court cost legally possible.
Use good estate planners to ensure things work the way you want.
For more information on the NAEPC, or to find an Accredited Estate
Planner near you, visit
www.naepc.org or call NAEPC toll-free at (866) 226-2224 for
suggestions.
Courtesy of ARA Content
EDITOR'S NOTE: The National Association of Estate Planners and Councils
(NAEPC) is a national organization of professional estate planners and
affiliated estate planning councils focused on establishing and
monitoring the highest professional and educational standards. NAEPC
offers public awareness of the quality services rendered by
professionals who meet these standards. NAEPC builds a team approach
involving cross-professional disciplines to better serve the public's
need in estate planning.
|
|
