Don’t Wait! Get Your Last Will & Testament Prepared

Don’t Wait!  Get Your Last Will & Testament Prepared

Did you know that if you pass away with no will, the state where you reside will determine what to do with your assets?

  • The death of a loved one is traumatic, but we will all deal with this reality at some point in our lives.  Many families are overwhelmed with all the details – insurance, money, assets, investments. And there is the worry of probate that requires time, money and can create friction among family members.  Proper planning will minimize the stress, legal issues and expense that come along with a death. 

What is probate?

  • Simply stated, probate is the process a legal court takes to finalize a person’s legal and financial matters after his/her death.  Basically, the court uses this process to distribute the estate of the deceased.  If a will was prepared, it is used as the distribution “roadmap” by the court.
  • Often, it isn’t that easy because most people have not written a will.  If you do not have a written will, the court and an appointed administrator will make the decisions about how your estate is distributed.  This distribution follows the laws of your state.  Don’t assume that your spouse and/or your children will automatically get everything or equal shares. 
  • The probate process is lengthy and complex for people who have not prepared for it.  If there is no will, or if there are a large number of assets, the time and costs of probate multiply.  If you are thinking this doesn’t apply to you because you are not rich, think again.  Wealth adds complications, but there are plenty of problems for the average middle-class family when you don’t prepare.

Do I need a trust?

  • Homes, investment accounts, boats, cash, jewelry and other assets must pass through probate.  However, a trust may allow you to pass your estate to your heirs without going through probate. Many people think that trusts are for children of the wealthy, but it’s also a beneficial tool for middle-class families.
  • In a trust, your assets become the property of the trust overseen by a trustee.  You name a beneficiary, just like with a life insurance policy.  Families benefit because they can usually bypass the probate process, and avoiding probate saves your heirs time, money and retains your and their privacy.
  • There is a cost to set up your trust but using an attorney will be less costly than setting it up incorrectly or not setting one up at all.  The cost is determined by the extent of your assets and the state where you live. An estate planning attorney will generally provide a free initial consultation. Ask your accountant and/or financial advisor to help with planning your estate.

Be proactive

  • The best approach to estate planning is to get it done!  Create your will, and a trust, if needed.  You can easily avoid the time, stress and cost of probate by getting your last wishes in writing.  With your estate planning in place, neither your family nor the court system needs to make decisions about who gets what after your death.

 

For more information on affordable estate planning, click this video link: https://vimeo.com/230674588

and contact

Mary Fritsch-Derrick

LegalShield Independent Associate

805-551-8083

https://mfderrick.wearelegalshield.com

 

 

Share this article...