Several years ago I visited a lady whose husband had passed away recently. This couple had been steady donors to the Deafness Research Foundation for many years. As we spoke, she confided in me that her husband had not left instructions for settling his estate. Though they had both worked hard, saved carefully, paid off their home and raised and educated their children, this dear woman now found herself near destitution.
She had money and assets but they were not accessible to her. Because her husband did not leave a legal will, she would have to petition a court to gain access to what had been freely hers prior to her husband’s passing. Adding this financial bind to the loss of her life-long partner made this difficult time even worse.
Her grown children were able to help her find legal assistance and over the next five months she survived on borrowed money until she was able to begin accessing the money that was rightfully hers. I will never forget that lady and her unfortunate predicament. Over the years, this true story has motivated me to do all I can to help others avoid the same problem by taking care of their finances while they are still able to do so and by creating a will.
What is a will?
Simply stated, a will is a legal document indicating a person’s wishes for the distribution of assets of every kind in the event of his/her death. The key word here is “legal.” Anyone can write a will using resources at the local library or will preparation kits that can be purchased at bookstores and office supply stores, as well as the hundreds of websites with advice on making a will. However, a will must comply with laws of the state in which it will be used and the best way to ensure this is to use an attorney well-versed in the probate laws of the state.
Even if you already have a will, you may need to update it if you have a change in your marital status, add or lose a dependent or if your assets change. If you move to another state after your will is written, you need to check the validity of the will in your new state of residence. A will that does not conform to the probate laws of the state can end up costing survivors hundreds of dollars and unnecessary hassle to gain access to assets that are co-owned with the deceased person.
You might think, “I don’t have enough money or assets to bother with making a will. Besides, the children will just divide everything among themselves.”
Whereas your survivors might not have to get a court order to get to personal effects such as keepsakes and furniture, I have seen families stress and even split over who gets mother’s rocking chair or dad’s fishing gear. A legal will that assigns personal effects to your family and friends may avoid conflict among your loved ones and make your passing less difficult for them.
Anyone who is above the age of majority (which differs from state to state) and has any assets should consider preparing a will. Married, single, in college, in the military, whatever your circumstances - you need a will. Married couples should consider having a joint will as well as an individual will. This approach prevents trouble regardless of whether the couple should die together
or separately.
No will?
What happens if you should die without a will? A government institution will decide how to distribute your assets. In most states, that institution is the probate court. As useful as it can be, you want to avoid probate court for three reasons: 1) Settling an estate in probate court takes a very long time – months or even years. 2) A court case costs a lot of money – money that comes out of assets that you wanted your family to have or worse, if your estate does not have money to cover the costs, your family has to pay for it. 3) A judge who does not know you nor your family nor how you want to divide your property will make the final decisions about your estate.
It sounds like I am down on the probate court. To the contrary, I worked at a probate court for some years. The problem is that the court must assign persons to your case to make a study of how best to distribute your possessions. That person must speak with family, friends, neighbors, etc., all of which takes a lot of time and costs a lot of money. The investigator’s findings are reported to the judge who will then appoint an administrator for your estate, someone you may or may not know. After several weeks, months or years, a judge will make a final decision about how to divide your assets. The court order may be carried out in a way that could cause difficulty among your family and friends. All the problems inherent in going through probate court can be avoided if you have your own legal will.
Leaving a Legacy
In addition to making sure your loved ones receive the property you wish to leave them, you can will a meaningful gift to a favorite charity. Many people make provisions to give money, stocks, bonds, life insurance proceeds, real estate and other assets to the causes they supported throughout their lives. The staff at the Deafness Research Foundation is able to assist you in creating your own personal legacy.
There are also ways to donate assets during your life that will earn you a tax deduction, some immediate income, will benefit your heirs by providing them with a tax-free inheritance and provide for your favorite charity at the same time – a win/win/win solution.
Many people hesitate to prepare a will because they incorrectly believe they might die soon after. Thinking about and preparing for your death does not make it any more likely to happen. But being prepared to face death, knowing that you have provided for your loved ones and the causes dear to you, does bring more peace to your life.
