Take this for what it's worth but the last thing you want to do is to die intestate. Make sure that you have a will.

If you do have a will, its a very good idea to revisit it every few years. All things change in life, and you should change your will to keep up with the changes in your life.

Also, you should have a beneficiary and contingent beneficiaries on all of your IRA and pension accounts.

It is a very good idea to do some estate planning. Its the kind of thing that if not done until needed, its generally too late.

I'm posting this because a will is something that I mention to everyone of my clients and I'm always amazed at how many of them don't have one, or have one that's so long out of date that it doesn't do what they want it to do. Just yesterday I heard of a person who had neglected to change the beneficiary on his IRA from his ex-wife to his current wife. Unfortunately, the court awarded the IRA to his ex-wife.

 

Wow...something to definitely think about.

 

Funny that you should mention this, Rob. Bea and I just updated our wills last week, and although there were only some minor changes, it is satisfying to know that our heirs will be well taken care of. The only glitch is regarding the 50 or so acres of farmland that I inherited from my mother in North Carolina. The attorney recommended that we prepare a revocable trust for the property so that my kids could immediately assume ownership upon my demise, thereby avoiding probate. Well, as it turns out, we have been unable to find a deed, since all that is left is remnant property from the original 125 acres that my dad once owned. (He sold off bits and pieces over the years, which left the remaining 50 acres.) Our attorney recommended that we contact a surveyor in North Carolina to survey the property and prepare a legal description so that there will be no problems with the trust. I just got off the phone with a surveyor who will do just that, so that everything will be legal and that there will be no issues regarding the property.

I agree with you, EVERYONE should have a will, regardless of age or how much you own or your net worth. Also, if you have any substantial property, a trust should also be prepared. In addition, you should have Powers of Attorney for you and your spouse, so that in case you are incapacitated, there is someone who can make decisions for you, and handle your finances. One more necessary document is a Living Will, which states who can make end-of-life decisions, should they become necessary.

Thanks for posting this, Rob!

(Maybe Legal Bill would like to add to this?)

 

Gene,

You absolutely should resolve the issue of the deed. This isn't something you want to burden your heirs with.

It is a very good idea to consult with an attorney skilled in preparing wills, particularly in the setting up of wills. Oftentimes you want some of your assets to go into trust either for tax purposes or just to make sure that you heirs don't get the assets before they are mature enough to deal with them. A skilled attorney and a competent CPA can help to guide you.

You are also absolutely right about the Living Will and the Power of Attorney.

Another thing that most people don't realize about their will is that the heirs should know where it is and should be versed in it. There shouldn't be any surprises.

 

Being of sound body and mind, I hereby declare I plan to piss it all away before I die....


but seriously the other aspect is do you have a living will in place?
I for one will reach a point where I do not want extraordinary measures taken to preserve life.
no feeding tubes, no weeks on a ventilator. When my time comes I intend to get on the bus and go.

 

My parents and my aunt changed from wills to revocable trusts with pourover wills. The cost is more up front, but there is no probate, so there are savings (time and money) on the back end. If you go the trust route, do NOT forget to put the assets in the name of the trust, especially the big ones like your house. You can also designate your estate rather than specific beneficiaries. Don't forget medical power of attorney as well as legal. And a "do not resuscitate" order. Having executed two estates so far with a third in the future, I know the value of these docs. Good advice, Rob! As for family members knowing what is in the will/trust, my parents were not big on discussing their financial affairs with the family. My mother has kept to that.

 

Think again in Massachusetts. You can have one, helpful but not recognized.

Living Will

According to Mass. Medical Society, "Massachusetts is one of only three states that recognizes Health Care Proxies but does not recognize Living Wills. Living Wills are still potentially useful because they guide Agents and physicians about the types of choices a person would make."

 

What a timely thread. I just put a living will together last week. With this being Flori-duh, I don't know how much of it would be honored should the need arise. But at least it makes my wishes known.
I've been giving my will some thought and I'll probably start working on it this summer. In addition to distributing my property, I'm also making my wishes known as to any services held. I'd like my ashes taken to a particular spot in Maine and spread with the ashes of my dogs. And I want two songs played - "Wish You Were Here" and "Comfortably Numb" - by Pink Floyd. It's important to keep a sense of humor about such things, I think.

 

Dorothy and I have done exactly the same along with POA's and Health Care Proxies.

The people with POA's know where the formal trust documents and wills etc. are but, as advised by our attorney, not the detailed provisions. They do, however, have copy of the Health Care Proxies and POA's and a summary copies of the trusts/wills detailing their responsibilities and allowable actions. It is also a legal document that can be presented immediately to authorities.

Not that we expect any problems with the provisions of the trusts/wills but there is a "boiler plate" clause in them that states that any heir challenging the final distribution of the assets will be automatically excluded from the distribution; their share to be distributed equally among the remaining heirs.

 

Nadine and I did our wills, notices to healthcare providers, living wills, durable powers of attorney for healthcare and financial management, and burial instructions within a year of getting married. We review periodically and update as needed.