Estate planning attorneys aren’t the only professionals who recommend that every adult of sound mind should have a will. Financial advisors, CPAs and other professional advisors recognize that without a will, a person places themselves and their family in an unnecessarily difficult position. A recent article titled “One document everyone should have” from the Aiken Standard explains why this document is so important and what else is needed for an estate plan.
A will is a “testamentary” document, meaning it becomes operative, only when the person who makes it (the “testator”) dies. When there is no will, the decedent’s assets pass by intestacy, which means they are distributed along the lines of kinship. This may not always be the desired outcome. For example, in New York State, if a married person with a child or children dies without a will, the first $50,000 of the estate and one-half of the remainder passes to the surviving spouse. The remaining half passes to the child or children of the decedent.
Why is a will important?
- It allows you to leave specific property to specific loved ones, friends, or charities.
- It may be used to provide funeral and burial instructions, although they can also be provided in a different document, so they are available to family or friends immediately.
- A will can direct how you want assets to be used to pay debts, any taxes and payment of estate administration expenses, which include the cost of probate, legal fees and executor fees.
- A will can be used to minimize estate taxes, which may be levied not just by the federal government but also by New York State.
- The will names the estate’s executor and the extent of his or her powers.
- If there are minor children, the will is used to name a guardian to raise the children.
- If you would like to disinherit any relative, the will provides the means to do so.
Everyone needs a will, regardless of how large or small their personal assets may be. Every adult should also have an estate plan that includes other important documents, like a Power of Attorney to name another individual to handle your finances if you become unable to do so because of an injury or illness. A Health Care Proxy and Living Will are also important for medical decision making and so those who love you can follow your end of life care wishes.
Reference: Aiken Standard (March 13,2021) “One document everyone should have”
