Without a will, there’s no way

By Executor's Resource, Inc.

Millions of Americans don’t have basic estate planning documents. A recent study showed that only 35% have a Last Will and Testament, and only 29% of us have financial or healthcare power of attorney documents. Some reasons offered by the study for not having these documents:

• 1 in 5 people (20%) thought that their assets would automatically transfer to their spouse or family

• Another almost 20% thought it was too expensive

• 11% didn’t believe it was necessary

• 9% thought it just took too much time.

If you die without a will

Each state has its own laws that govern what happens to your property and your dependents. If you own property in multiple states, both sets of laws will need to be followed, and they could be different. The legal term for this type of law is “intestacy laws”.

Generally, intestacy laws specify a ranking or order for which your assets will be distributed after you pass. A general rule of thumb in thinking about these laws and the ranking or order that typically exists is:

 Assets will transfer to your spouse first.

 If you don’t have a spouse, then your children are next in line.

 If you have no children, then your parents – if they are still alive -- receive your assets.

 If you have no living parents, then your brothers and/or sisters.

 If you were an only child or your siblings aren’t alive, then your nieces and nephews stand next in the order to receive assets.

How does this sound to you? Many people would probably agree that this order isn’t well-aligned with their actual intent. This not only applies to your financial assets but also to your precious items of personal importance.

Another major issue is applicable for those with minor children. If you and your spouse/partner pass at the same time and there is no will, the court will appoint a guardian. Most, if not all loving parents would agree that this would be a highly undesirable situation. This has an even greater impact for unmarried couples with minor children.

Bottom line
Bottom line? Without a will or appropriate legal documents, there’ll be no way to identify or honor your intentions.

For those of you out there who lack these basic documents, check out our posting on 7 ways to find an estate planning attorney, and what questions to ask to identify the right professional for you.

Get it together!
Starting to gather and organize all of your important documents and thinking through your preferences now can save you time and money in the estate planning process. Our EstateLogic® program helps you do just that. Watch our 2-minute video tour to see how we can help.