Estate planning is not just about avoiding taxes or for those who want to pass on wealth, there are many other purposes for making an estate plan. We recommend a well-made estate plan for all of the following reasons:
- Making sure you pass property to the intended beneficiaries – My friend, John, has a son from a previous marriage and has been happily married to his second wife for many years now with their teenage daughter. John, unfortunately, believed that when he passed away since he told his accountant what he wanted to leave to his son and his wife that it meant his life insurance would pass to his son and everything else to his wife and daughter. In fact, since John never made a Will, his son did receive the life insurance, but his estate was divided among his wife, his teenage daughter, and his son. His home was owned jointly with his wife, but not with rights of survivorship. Now his wife is having to buy out the son for her own home, and the son is receiving far more than John intended. John was not a wealthy man, but what he did leave behind is now messy and being divided in ways he did not intend.
- Easing the burden on surviving family – John told his wife he wanted to be buried in the town they resided in, but his sister wants him back home in the old family plot. Meanwhile, his son and wife are arguing over some of John’s personal effects (like his watches, car, and ATV) which the son insists John said he could have and the wife feels like these items should stay with her. Without a Will or personal property memorandum explaining what John really did want, all of these decisions must be made by getting everyone to agree, or with the court’s involvement. Either way, all could have been avoided and easily directed with a Will. See our article “Your Will: Your Last Love Letter”.
- Deciding guardians for minor children – If John and his wife had been in the car together during the accident, without a Will there would not have been guidance on who would be the legal caretaker of their teenage daughter. A court would decide, but it may not really be the best fit or whom they would have chosen. As a teenager, perhaps a neighbor or good friend who lives in the same school district would have been a better choice than Aunt Sally who lives three states away. Without a Will to name a guardian, a minor child will likely be placed with the closest living relative.
As you can see, the reasons for making an estate plan are wide and varied and have nothing to do with the accumulation of wealth. Providing guidance to those you leave behind and securing their futures are purposes of a good estate plan. At Grissom Law, LLC we work with clients who have estates of all sizes. Let us help you help your family.
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