Is there a need for a Will?

[SecondCor521]

Two ways, 1 look at the last tax return filed and see if banks are listed, and/or see if 1099s where kept, else wait until the next years 1099s arrive,

Good thoughts, although checking accounts often don't send 1099's these days as interest is typically under $10 a year.

Going through the deceased person's mail and email and paper records might turn accounts up as well.

 

[Stormy Kromer]

A few years back I had a cousin, single with no children, who came down with terminal cancer. She asked me to be POA to handle her affairs. Her cancer got worse fast and before we knew it she wasn't able to handle her affairs and I stepped in. I got a call one night from a step sister who said she was going to contest my cousin's will because she "deserved it". I knew my cousin did not have a will. She was an only child and told me she wanted everything to go to her mother (her dad had died earlier).


I contacted my own attorney while she was on her death bed and told him about the situation and possible trouble with the step sister. I asked if my cousin should get a will.


The legal advise I was given was that my cousin would be better off to pass without a will, intestate, since it would be very, very difficult for the mean step sister to contest it. Turns out the attorney was right, the contest failed to get started and everything passed to my cousin's mother just like she wanted. This is just an example of a person being better off without a will. I think it is rare, but it can happen.

 

[pb4uski]

.... Beneficiary designations trump a will or the lack of a will. I have a friend who way back in the 1970's was made $50,000 richer because her very soon-to-be ex-husband did not bother to change his beneficiary designation. $50,000 then is about $250,000 today. Not exactly chump change.

+1 A good friend of mine finally figured out that his low-life gold digger wife was cheating on him and he divorced her. She marries another guy. Second marriage for both of them.

Gold digger's new husband dies unexpectedly. He had never changed the beneficiary of his life insurance policy so his ex gets the death benefit rather than the gold digger. Sweet justice!

 

[athena53]

My late husband had a will and I never bothered having it probated. He was 15 years older and had chronic health issues, the house was in a trust in my name (with liberal provisions to take care of him if I predeceased him), all the investments were in my name (he wanted it that way- I like investing, he thought it was a chore). He had a checking account at B of A with under $300 in it and just before he died we moved the titles to our 2 cars from his name into mine. I was the beneficiary on his IRA.

B of A contacted me after he died (must have tapped into the SS death database) and after some minimal paperwork they gave me the balance in the account.

But, since others here have pointed out possible complications- maybe a simple, DIY will from Legal Zoom or Willmaker?

 

[gauss]

If I were inclined NOT to do a will then I would check my state's Intestacy laws. This is the order of precedence on who (ie which family members) will legally inherit your assets that are not otherwise covered (ie joint ownership, beneficiary etc.).

If you have issues on who these default inheritors are, then you might want to have the will in place.

-gauss

 

[karen1972]

The big thing is to make sure the designations are current and what each policy is, some of them have to be re-verified yearly or they are not valid. I'd also have a printout confirming that.

A large bank told my mother she couldn't get access to my dads brokerage account as it had to go thru probate, she is like I'm a named beneficiary on the account, here is the death certificate. They claimed no beneficiaries were named, she brought in the paperwork proving she was indeed named, they still gave her grief, it was ridiculous and we had to escalate to corporate headquarters to get appropriate action. The bank manager was fired shortly after, I can only hope we contributed to that.

 

[Midpack]

As many have noted, it’s very important to keep beneficiaries up to date no matter what else. And often overlooked, self included? Even though the estate was simple ($ accounts, house, car, personal items), my parents had a full blown trust, etc. - made things incredibly easy for sister and I - their final gift to us...

 

[Badger]

I live in Florida so I don't know what applies in other states. I have a will, a revocable trust, as well as have designated beneficiaries on CDs and other cash accounts. When concerned that I would exceed the maxium amount for FDIC coverage I was told by the bank that I could spread the money out with designated beneficiaries to cover the cash under FDIC as well as that money would go to the beneficiaries first regardless of the will or trust. Made me sleep better.


Cheers!

 

[OldShooter]

These discussions are always head-scratchers for me. A will is such a simple thing and has the potential to prevent problems, I think the question is better stated as "Why should I not have a will?"

It seems to me a liitle like Pascal's wager: It posits that humans bet with their lives that God either exists or does not. Pascal argues that a rational person should live as though God exists and seek to believe in God, just in case He does exist. It seems that there is little cost to bet that a will is needed and to prepare one, but potential high cost to believe that one is not needed and be found to be wrong.

 

[Rianne]

It's expensive to go through probate in Illinois. Thus, we have a living trust. The tIRA has beneficiaries stated since it is not in the trust. So, if both of us die, all assets to directly to the trust. It was a PITA to set up but worth it for our beneficiaries. IMO, it is also worth it to hire an estate attorney.



Probate in Ill. include:

Court costs;
Legal fees;
Administrator/executor fees; and
Fees of other professionals.

 

[brett]

My parents both had a will-prepared by a lawyer. They also pre-arranged and prepaid their respective funeral costs w/ their wishes made known.

It was the last kind thing that they did. It made dealing with their deaths, the funeral, and the subsequent estate issues very straightforward.

We had our wills done ten years ago, and revised two years ago. We view it as a living document subject to change. No doubt we will be revising it another one or twice (hopefully).

 

[pb4uski]

no car.
has a small joint checking account with my brother. Forgot to mention that

If he is joint on the account then it becomes his when she dies. In fact, since he has signatory authority over the account, I wouldn't even both to notify the bank... he can just write a check for the balance to himself and that will be that.

 

[RetMD21]

If he is joint on the account then it becomes his when she dies. In fact, since he has signatory authority over the account, I wouldn't even both to notify the bank... he can just write a check for the balance to himself and that will be that.

I like that idea!

 

[pb4uski]

Just keep in mind that the flip side is a joint owner can also do that while you're still alive.the other downside is if the joint owner does something stupid and gets sued and there's a legal judgment against them then that money could be used to satisfy the legal judgment. Not a panacea.

 

[Chuckanut]

Here’s another reason to have a will.....

You are a very low income person with a net worth of $14.76. Everything you have is junk.

Your old school chum, Billionaire Bill, who you helped in your youth by teaching him about computers, dies on 9/4 leaving you $1,000,000 in appreciation of all you did for him in those early days. That million will be yours as soon as the executor can find you and write the check.

It’s now 9/10. On your way home from Bill’s funeral you plan on seeing a lawyer to have a will drawn up. You never make it. Alas, you fall down, hit your head on a granite statue of the town founder, and bleed out before the EMTs can arrive. DOA at the local hospital.

Who gets the million dollars Bill left you?

 

[Sunset]

Here’s another reason to have a will.....

You are a very low income person with a net worth of $14.76. Everything you have is junk.

Your old school chum, Billionaire Bill, who you helped in your youth by teaching him about computers, dies on 9/4 leaving you $1,000,000 in appreciation of all you did for him in those early days. That million will be yours as soon as the executor can find you and write the check.

It’s now 9/10. On your way home from Bill’s funeral you plan on seeing a lawyer to have a will drawn up. You never make it. Alas, you fall down, hit your head on a granite statue of the town founder, and bleed out before the EMTs can arrive. DOA at the local hospital.

Who gets the million dollars Bill left you?

Cute story

Since Bill left it to you, and you are dead, then it goes to someone else in Bill's will as you died within 30 days of Bill, unless Bill included your stripes <sp?>

Same idea if you win a lottery after you die. ....

 

[gauss]

^ If there is a 30 day survivorship clause either in the original will, or in state-law, then you having or not having a will will not make a difference in the outcome.

> Who gets the million dollars Bill left you?

I believe that it would be your next-of-kin as defined by your state's Intestacy laws if you actually inherit Bill's money.

-gauss

 

[meierlde]

If I were inclined NOT to do a will then I would check my state's Intestacy laws. This is the order of precedence on who (ie which family members) will legally inherit your assets that are not otherwise covered (ie joint ownership, beneficiary etc.).

If you have issues on who these default inheritors are, then you might want to have the will in place.

-gauss

In general intestate laws work by class if married the spouse gets all or 1/2 depending on the state and if children from earlier marriages are involved. Here is a website about Florida's law for an example. For single folks it is any descendants, then up to parents, then siblings, then grandparents. then aunts and uncles (or their descendants if not still living etc). Basically this is the way one would expect it to work. Note in the worst case the money might escheat to the unclaimed property office, which if one has the proper documentation would distribute if no second cousins are found. (beyond second cousins it would likely take a geneologist to figure out.

 

[CardsFan]

These discussions are always head-scratchers for me. A will is such a simple thing and has the potential to prevent problems, I think the question is better stated as "Why should I not have a will?"

This seems so obvious to me. There is NO down side to having a will (except maybe $500)

 

[OldShooter]

... (except maybe $500)

And as a percentage of the estate that is how much? Not much.

 

[CRLLS]

Dare I say: Nolo's Quicken Willmaker & Trust 2020 is available for a DIY'er for <$90. It is valid in all states. Pretty easy to DIY for a simple estate. For someone with no estate to speak of, that is more in line than $500. We did it for all of our estate planning. Comparing it to the screwups that MIL's papers were in, it is worlds ahead of the "professionally" prepared will and trusts of hers. I am, of course, not an attorney. But I did stay at a Holiday Inn Express once. From my perspective, if one document references the other, at least the name of the other should be right. And any addendums should match the name of the original. Just saying...... When this was brought to his attention years later, the lawyer agreed it was wrong and changed her papers. When the bill was sent, we discussed his original screw up and he did the changes for free.

 

[Scratchy]

These discussions are always head-scratchers for me. A will is such a simple thing and has the potential to prevent problems, I think the question is better stated as "Why should I not have a will?"

It seems to me a liitle like Pascal's wager: It posits that humans bet with their lives that God either exists or does not. Pascal argues that a rational person should live as though God exists and seek to believe in God, just in case He does exist. It seems that there is little cost to bet that a will is needed and to prepare one, but potential high cost to believe that one is not needed and be found to be wrong.

Agree with this 100 %. The family will never regret that she made a will but they may regret she didn't.

 

[Chuckanut]

^ If there is a 30 day survivorship clause either in the original will, or in state-law, then you having or not having a will will not make a difference in the outcome.

> Who gets the million dollars Bill left you?

I believe that it would be your next-of-kin as defined by your state's Intestacy laws if you actually inherit Bill's money.

-gauss

I did not know about 30 day clauses. But, my pointy remains. Without a will if you come upon some unexpected money or property and then you die (after 30 days if necessary) the bounty may go to somebody you would never have given anything to under any circumstances. Yes, it's a bit of a crazy scenario, but not impossible.

 

[Sunset]

I did not know about 30 day clauses. But, my pointy remains. Without a will if you come upon some unexpected money or property and then you die (after 30 days if necessary) the bounty may go to somebody you would never have given anything to under any circumstances. Yes, it's a bit of a crazy scenario, but not impossible.

True, but it won't bother you...

 

[2177V]

It may depends on your state.

In the State of California where I am from, California issue what is call "Probate Code". Here is an example of a link to the California Probate Code:

https://california.public.law/codes/ca_prob_code_section_6400

Your state should have something similar and the probate should be online for the public to understand your state's probate code.

My Dad passed away first so the assets went to my Mom. When my Mom passed away, my brothers and I discovered that our Mom consulted an attorney who set up a "poor man's living trust for our Mom.

The title to her house was made in the oldest brother's name as an "Enhanced Life Estate Deed" which is called a Lady Bird Deed. Her savings/checking/IRA accounts were designated a "POD" or payable upon death accounts with a specific beneficiary.

Before we distributed the assets without probate, we hired an estate attorney for one hour consultation. The attorney stated that all of my Mom's assets should be outside Probate according to California law and because there were a named beneficiary.

However, the attorney stated something interesting: He asked: Is there a possibility of a dispute within the family which we stated "no". The attorney explained that "anything can be disputed" and usually this happens when the estate is a very large one or the survivors do not get along very well.

The attorney also stated another interest point: The survivors must publish a "death announcement" of the deceased in the newspaper to start the clock for any claims against the estate. After expiration, Probate court will disregard any claims against the estate.

In any case, i suggest that you look up the probate code in your state especially if the estate is a large one or if there is a potential for a dispute within the family. Never assume anything unless you read the probate code with your own eyes or consult an attorney. Also, some counties provide "free consultation" of a county estate attorney for the public on estate matters. I would look at the homepage of your county to determine if this free service is available to you.