What do you want to have happen when you pass away? Who do you want to pass your grandfathers' watch or mothers' wedding ring on to? You do want to make that decision, don't you?
Something I see in my day-to-day meetings with my clients that's all too common is not having a valid will (or having a will that's not up to date). Of course I understand that it's easy to put off with life's demands and due to the fact that making a plan for when you die isn't exactly something people enjoy talking about. Nobody likes to do it.
"What Happens if You Don't Have a Will?"
The short and simple answer is your loved ones have to go through the court-mandated probate process (depending on the value of your estate, which varies depending on your state), which is a very time consuming and expensive way to settle an estate. The main purposes of the probate process is to do a couple of things:
- To settle the decedent's debt's.
- Protect the decedent's estate from being taken advantage of by following rules on how the real property will be divided.
I know from personal experience that going through probate for a loved one's estate is a difficult, emotionally straining, stressful, and expensive thing to live through. Generally speaking, the process can last 9 months or longer and will eat away around 5% of everything you've worked so hard for in the form of attorney's fees and settlement costs. That's a lot stress and money lost for the family due to not having a reasonably simple document in place, wouldn't you say?
Tips:
- If don't have one, get one executed immediately! They're relatively inexpensive (I provide a simple will kit to my new clients)depending on your situation and you may not even need an attorney to put one in place. Of course, it's always a good idea to use professional help as your situation warrants.
- Review your will after major life events (marriage, divorce, child birth, death in the family, etc.) or every 2 years. You want to make sure everything is still set up the way you intended and that your Corvette isn't going to go to your ex-spouse.
- Whether or not it's legally required, have your will notarized. This is an additional layer of protection which will help if your will is contested.
- Make arrangements in advance for whom will be the executor of your estate. This will take away some uncertainty and stress for the family, plus it's just good practice.
- Consult with a qualified attorney if your situation is complex. I know with the economy people are trying to save money, but this is one thing where you're better off not automatically trying to save a few bucks. If in doubt, call your attorney!
Intestacy Calculator
Click here to see how your estate would be divided if you passed away in Texas without a valid will in place (you can also choose other states as needed). Keep in mind that this doesn't take into account settlement costs and attorney's fees or the time and emotional strain on the family.
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