Let's say you don't have dependents and not much in the way of assets.So do you really need a will?
No one ever truly needs one: State laws outline procedures forthe disposal of assets when people die without having made out a will.In fact, legal experts estimate that more than half of Americans don'thave a will or other estate plan in place at the time of their deaths.
However, most people leave this human domain owning more thanthey might imagine, and in many cases there's a high probability thatthey'd like control over how their assets are distributed. A will isthe way to do that. Moreover, a will is more than a list of yourpossessions. It is also a forum for speaking to loved ones after yourpassing, a means for leaving directions on specific matters and a wayto detail the type of care you'd want for those you love, even a pet.
"A lot of people don't realize how much they'd be worth ifthey died at this moment," said Leslie Wilshire, a New York attorney atGreenfield, Stein & Senior LLP, who specializes in estateplanning. "I think it's probably true that there are a lot of peopleout there who don't have wills who should."
But, Wilshire said, "there are some people who are just happyto let their property go to their next of kin and a will doesn't makesense."
Without a will, your assets are likely under state law to goto your surviving family, your spouse and children, if you have them,or to your parents and/or siblings if you're single and childless.Deciding whether a will would suffice or whether you need amore sophisticated type of estate plan, such as a trust, begins withdetermining what you have. Large cash accounts, investments, homes,cars, airplanes, boats, art, wine, baseball cards, furniture? Theyshould all be covered by your will.Retirement accounts such as 401(k) plans or Roth IRAs shouldalready specify beneficiaries, so a will won't dictate what happens tothat money. The same applies to savings accounts or certificates ofdeposit that have beneficiaries.Let's say you have no immediate family, and you do havesizable assets. In such cases, you'd be wise to consult an attorney tohelp plan your estate, Wilshire said. For one thing, there are estatetaxes, federal and state, that should be considered.The first $1.5 million of your assets is tax exempt underInternal Revenue Service regulations, but after that tax implicationscan be significant. States have varying laws on taxing estates.And remember, there's the issue of control. The heftier yourproperty base, the more likely someone will step forward to pursue aclaim on your property. A comprehensive will or trust can often derailsuch efforts and reduce the period it takes to settle your affairsafter you die.
Some other issues often addressed by a will include directionson how to distribute assets to a friend or other non-relative andspecific guidelines on what to do with particular property."I had one client who had very little in terms of money, buthe had some collections of things that while they're intrinsic valuewas debatable, it was important to him that they go to a particularperson," Wilshire said. "And he also had very strong feelings about notwanting the people who were his next of kin to receive that collection."Source: The Record; BergenCounty, N.J.
Source: Money & Work
