Get Cracking On Will
September 1, 2004
by Edward Polansky
San Antonio Business Journal
People, in general, are often hesitant
to prepare wills. There's a number of reasons for this.
1. They are reluctant to consider the
impact of their death. "I'm too young." "I'm not
married." "I don't have any children." "I've got plenty
of time."
Some people have to literally be led
by the hand to an attorney to establish a will. Why?
They are trying to avoid acknowledging mortality.
You have to face reality: We are all
going to die.
2. They want their will to be perfect,
so they wait until everything is lined up just right.
They prefer to have no will than a will that doesn't
cover everything just the way they want it.
"I can't decide who'll be the
executor." "I don't know who should be the guardian to
my children." "I want to leave something to charity, but
I can't decide what or how much."
Get something done immediately, even
if it's not perfect, because you can always come back
and improve the product. And you should do that
routinely over the years as changes happen in your life.
3. They fail to realize the need for a
will as they don't feel they have many assets to give
away.
"I don't have a taxable estate, so why
worry?" "All I've got is some personal assets...who
really cares?"
The way I see it, if nothing else,
personal assets can be divided. Feelings have been hurt
many times over who got Mom's china.
In state's hands
One can rationalize their way out of
creating a will, but the negative results can be
significant, even devastating.
Wills provide for the orderly
disposition of assets when you, as the owner, die. If
you die without a will, state law will decide how your
assets will be distributed. Without a will, family
disputes can ruin relationships between those left
behind. The surviving spouse of a married couple with
children could face a major problem if there isn't a
will.
Take the case of the widow whose
husband died after a brief battle with cancer shortly
after retiring early. He had told his son he was leaving
funds in some of his bank accounts to him. His wife had
believed they were being left to her. A will didn't
exist to clarify the man's position. Neither his wife
nor his son would compromise their positions and the son
ultimately sued his mother. This deeply divisive family
conflict could have been avoided had the man's
intentions been stated in a will and had he made the
proper beneficiary designations.
In Texas, which is a
community-property state, it's worth looking hard at the
ramifications of the law, particularly if you come from
another state. No will means the state determines who
gets what and the effect -- at least in Texas -- is to
divide the assets among the mother and the children.
Even though a spouse would have intended for the
surviving spouse to have complete control over all of
the couple's assets, the law may disagree.
Beneficiary designations
Even if a will exists, it applies only
to assets controlled by your estate. Many of your assets
may not be a part of your will, but rather a result of
how you establish your beneficiary designations when you
set up the account -- often something you hardly give a
second thought. Assets, such as bank accounts, life
insurance payments, and retirement accounts will
transfer on your death according to the beneficiary
designations and are not affected by terms of your will.
Regular review
Even if you have a will or think that
you have appropriately planned for the disposition of
your assets, it's vital to review it again from time to
time with competent legal counsel. Take the example of
an elderly woman who owned valuable real estate in
Hawaii. She died without a will, thinking she didn't
need one since she had transferred assets during her
lifetime while reserving a life estate for herself --
meaning she had access to property until her death. She
had not understood that the assets would be considered
to be assets of the estate and tax would be due at her
death. Because she had made no provision for the estate
taxes, the estate was required to sell the property in
Hawaii, precluding the heirs from keeping it in the
family.
Circumstances change ... you may have
another child or children, or one may suddenly die.
Divorces can occur, or remarriages, and beneficiaries
become bankrupt or incompetent. Many people change their
minds about what to do with their assets ... at one time
they may want to leave a substantial part to their
children, but they may think differently when their
children become successful in their own right and they
themselves become more philanthropically inclined as
they age.
A growing sentiment today among
maturing people is not to leave too much wealth to their
children because it may stunt their incentive to be
successful on their own.
Many reasons exist for you to have an
up-to-date will. Consider, though, that it may not
accomplish everything you intended. It's useful to
review the beneficiary designations for your assets, as
well as your will, to make certain that they fit with
what you want to do for those you leave behind, whether
they are family or friends, or organizations you wish to
help. Reviewing your situation can also be simply to
ensure there is no hurt or animosity when people learn
what is to be done with your assets if you die
unexpectedly.
For More Information Contact::
PartingWishes.com
Email:
support@partingwishes.com
Internet:
http://www.partingwishes.com
