Understanding Estate Planning
Do I need a will?
Probably.
Do I need a trust?
Maybe.
Do I need advance medical directives?
More than likely.
Let’s start with the first question – do I need a will.
For most of us, the answer to that question is a resounding, “YES”. And yet, according to 2017 survey conduct by Caring.com and reported on by AARP – “only 4 in 10 American adults have a will or living trust.”
Let’s start with the basics – what is a will?
A will is simply the written declaration of an individual regarding their intentions for the property, pets, and in the case of some parents – the minor children – who are left behind after the individual (referred to as the testator in legalese) dies.
A will can be simple or complex depending upon the scale and scope of the individual’s earthly possessions and if the future care (guardianship) of minor children is at stake.
There are numerous benefits to a will.
Not the least of which are:
- You get to decide ahead of time exactly who gets your money and your stuff – and in exactly the quantities you determine. If you want to leave everything to charity – that’s entirely up to you. If you want to leave everything to 2nd cousin Matilda – also entirely up to you. If you want to divide your earthly wealth and possessions among a hundred friends and family members – it’s your call.
- If you have minor children in your care, you get to determine ahead of time the person or persons who will care for your children after you’ve passed away.
- Your pets go to the next home of your choosing.
- All of your electronic and intellectual property is safely transferred to the person, people, or organization of your choosing.
- You can (with a few exceptions) intentionally leave people out of your will – nothing more needed to say on that topic.
What happens if you die without a will (intestate) – think Aretha Franklin, Prince, Howard Hughes, Sonny Bono, Michael Jackson.
In Colorado:
- According to Nolo, “If you die without a will in Colorado, your assets go to your closest relatives under ‘intestate succession’ laws”
- Yup, your closest living relatives get everything – not your friends, not your favorite charities, not 2nd cousin Matilda.
- If you have a spouse, living parents, and no descendants – your spouse shares your estate with your parents.
- If you die with pets in your care and no one is immediately willing or able to take them – they are headed for a shelter.
- If you die with minor children in your care – the probate court will make the decisions as to their future guardians.
If none of that sounds appealing, join the club. I can’t think of any reason why I’d want the courts to make decisions regarding the care of my property, pets, or loved ones.
The easy solution is a will. If your life is complex due to wealth and children – consider hiring an attorney to create your will. If your life is fairly simple – no kids or adult kids and you know who you want to inherit your money and stuff – then consider using an online service such as Nolo or LegalZoom.
In my next blog post, I’ll discuss trusts and advance medical directives.
If you live in the Loveland area – or anywhere along the Colorado Front Range – and have concerns about your estate plans, consider scheduling a complimentary consultation meeting with me.