Someone who dies without a will joins a legendary fraternity that includes Abraham Lincoln, Pablo Picasso and Howard Hughes. But there's nothing exclusive about this club—nearly half of all individuals leave no will. And of those who do have a will, it may not even reflect their most recent wishes.
The Importance of a Current Will
People give all kinds of excuses for not having wills: "I don't want to pay for one." "I don't know how I should leave things." "I'm too busy right now."
But if you don't have a will, state law will divide your estate according to a rigid formula that's unlikely to reflect your wishes. On the other hand, look at the good things you can do through a will if you do have one:
- Direct the division of your property the way you choose.
- Make special financial arrangements for family members who are minors, disabled or unfamiliar with money management.
- Minimize the taxes on your estate by creating trusts.
- Provide support for your favorite charitable organizations, like Kappa Alpha Order Educational Foundation, and gain recognition for your benevolence if you so desire.
Problems With Will Substitutes
Whether or not you have a will, much of your property may pass in other ways.
Joint property generally goes to the other owner. So does half of community property. Property with a named beneficiary (such as life insurance, pension plans, Keoghs, IRAs, savings bonds, tax-deferred annuities and bank accounts in trust for others) goes directly to that person. You may have property disposed of by contract, such as a partnership or other business agreement. Property you put into a living trust goes to its beneficiaries.
Are these alternative arrangements an adequate substitute for a will? Generally, they are not. Chances are, everything you own is not covered, and this can cause problems.
Don't Lose Out
No will—or even an old will—means your wishes may not control the distribution of your property. Dependence on state law or will substitutes can result in heavy taxes and legal expenses. That's why you need a will.
For assistance with your will, see an attorney who specializes in estate planning.
Please contact Erik Showalter at 540-460-1401 or 540-463-1865, or via e-mail at eshowalter@ka-order.org, for more information.
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