ESTATE PLANNING BASICS: PART I – MORE THAN JUST A WILL

Jan 15, 2013 | Miscellaneous

By Timothy Denker

Recently, I met with a couple who was beginning to contemplate retirement. A family member told them they need to get Wills drawn up so they decided to find out how they should do that. “Well, we don’t really have anything, so we’re not sure why we would need a Will?” I can’t even begin to tell you how many times people say those exact words to me when I tell them that I help people plan their estates. It’s a common misconception that estate planning is only for the wealthy when in fact everyone should have it, and having a Will is just one of the things needed for a properly planned estate.

[On a side note, I would like to point out that a person’s estate includes every piece of property they own. This includes their house, car, bank account(s), stock, retirement account, life insurance, jewelry, furniture, etc. So even if you don’t think you have anything, there’s a very good chance you have at least something that needs to be addressed.]

Due to the variety of issues that are addressed in an estate plan, I’ve decided to break it up into several parts: Wills and non-probate planning, probate, the healthcare power of attorney and healthcare directive, the financial power of attorney, and trusts. For this article, I’d like to discuss not only the Will itself, but also what should be addressed outside of the Will to make it as easy on your loved ones as possible.

Everyone should have a Will. If a person dies without a Will, they died intestate. This means that any property passing through the probate court will go to whoever the state legislature has decided should get it. Do you really want someone else making that decision for you? Did you know that if you die with a surviving spouse and children, your spouse does not necessarily get everything?

If a person dies and has a Will, they died testate. So what exactly is a Will? Simply put it provides the opportunity to legally choose who will get what, and which person is trusted to handle divvying out that property according to the Will. There are many different provisions in a properly drawn up Will that will not only handle the basics of a Will, but will also address methods used if probate is necessary, the powers of the personal representative (a.k.a. the executor), whether the property should be placed in a trust, guardianship for minor children, and most importantly (in my opinion) helping keep your loved ones from fighting.

So in addition to having a Will drawn up and properly executed for you, a properly planned estate will include non-probate planning. Basically, getting the property to legally pass without having to use the probate courts. When an estate is planned properly, it will save your heirs significant amounts of time, money and hassle that would normally be incurred during the probate process.

Timothy Denker
The Legal Center for New Families LLC
229 SE Douglas, Ste 210
Lee’s Summit, MO 64063
(816) 434-6610
tdenker@lawfornewfamilies.com

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