Why you need an Estate Plan
The Importance of Having a Will
At some level, everyone knows that they need a Will. Many people have heard of a living trust. However, most of us don't realize how important these instruments are.
More than 60% of all Americans die "intestate," without a Will or a Living Trust. And a Will or a Living Trust does make a difference — not just because it determines how your assets are divided. Without a Will or a Living Trust, your estate will be divided according to predetermined state laws, perhaps in ways you didn't intend. Remember a Will's old name: Last Will and Testament? Ultimately, a Will is a statement to your loved ones about things that were important to you during your lifetime. The importance of having a Will or a Living Trust is making sure you have the opportunity to make your final statement.
Your Will or Living Trust is important because it is the only legal way to provide for your loved ones after you die. A Will is a validly executed document that disposes of an individual's property and other owned interests when he/she dies. The only way to ensure that your heirs are provided for at your death is to write a legally enforceable Will. Estate planning of any sort often involves legal, financial and tax consequences. Moreover, the laws of each state govern the validity of Will provisions, execution formalities, and other requirements. The requirements for one state may not be identical to those of another state — hence, what works in one state may not work in another. Therefore it is imperative that your Will is properly drafted by a licensed, competent attorney.
Your Will is legally enforceable if it complies with certain legal requirements. Without such a Will, it is quite possible that your loved ones will not receive your estate as you intend. A Living Trust is a type of trust created during the your lifetime. Often Living Trusts are set up so that they can be changed (referred to as "revocable" trusts) as events change.
One of the most important reasons for writing a
Will or Living Trust and reviewing it regularly is to provide clear, unambiguous
language. This may seem obvious, but unclear or confusing language is often the
cause for delays in probate (the legal process of verifying your Will or Living
Trust through the court system). Specific, detailed language can mean less time
and less expense in settling your Will or Living Trust.
What Happens if You Die Without a Will?
If you die without a Will, your state of residence takes over. This means that a complete stranger is appointed to settle your affairs. Without any thought or knowledge of your wishes, the state-appointed administrator divides your property according to state law. Without consideration for what is important to you, the state law of distribution treats all heirs according to a predetermined formula. For example, your spouse or children may receive a smaller share than you wish, or a distant relative might receive what you would like to leave to a close friend or favorite charity.
When the state settles your affairs, there will be:
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More time in probate
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Higher legal costs and taxes
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Less property distributed directly to those that matter to you
Knowing that your loved ones will receive less is a compelling reason to have a Will and/or Living Trust. A Will also ensures that your assets are distributed more quickly in the way that you intended. Imagine, for example, that you've supported a favorite charity for 20 or 30 years. That organization will not even be considered as the state distributes your estate.
Note: The information provided is not
intended to be a substitute for professional estate planning or legal advice.
Since the laws regarding the validity and enforcement of Wills vary from state
to state, it is important to seek legal counsel in preparing your Will.
For More Information
If you think we can be of any assistance with regard to your estate plan, or should you wish to provide for Greenpeace in your Will, please do not hesitate to call our Gift Planning Office at (800) 328-0678.