Do YOU Have a Will?
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This document discusses the importance of having a will. It notes that many people, especially younger adults and Baby Boomers, do not have a will. Not having a will puts one's family and assets at risk. The two primary motivations for creating a will are one's family, especially minor children, and one's assets. A will ensures one's wishes are followed regarding who raises minor children and inherits assets if they die. It also discusses other estate planning tools like power of attorney and living trusts that everyone should consider at some point in their lives.
Do YOU Have a Will?
- 1. Do You Have a Will? by Tommy Greer Based on a recent article in USA Today, 41% of aging If minor children are not a consideration, ones assets Baby Boomers and 71% of adults under age 34 do not may also motivate one to do estate planning. If a person have a will. This lack of planning puts the future of dies without a will, each states legislature has state laws families and loved ones at risk. that determine who will inherit your assets from you. These legislatures attempt to write the laws in such a way Most people dont have a will because they think it is too as, in their estimation, most people would choose. This expensive or this is something that does not have to be usually means, in one formulation or another, the closest done right now. family members inherit. Although there are many factors involved, the overriding State and Federal tax planning can also be a motivating considerations motivating preparation of a will are ones factor for estates large enough to be impacted. The family and ones assets. These two primary motivations inheritance tax exemption is continually changing and impact the need for estate planning. is also subject to Sunset provisions which makes it very First, a will is very important to anyone with (or expect- important to seek professional help. ing) minor children. Many young parents dont believe Its a smart idea to discuss related issues with an attorney they need estate planning because they are starting out, such as power of attorney in case of disability but not not likely to die, and without a large net worth. A will death, a living will to deal with heroic medical efforts is still recommended first and foremost because it is the and a living trust if the estate is at least $250,000. legal document which nominates guardians for minor children in the event of an untimely demise. If both Everyone addresses these issues at some point but with- parents die without wills, a chancellor or judge will make out proper planning you may not be the one who gets to the decision about who will raise the children. This make the decisions! may or may not be the person the now-deceased parents would have chosen. 7 Major Errors in Estate Planning The goal is to 1. Not having a plan make sure your 2. Online or DIY rather than professionals 鍖nal wishes are 3. Failure to review beneficiary designations and tilting of assets executed properly 4. Failure to consider the estate and gift tax consequences of life insurance 5. Not maximizing annual gifts and to minimize 6. Failure to take advantage of the estate tax exemption in 2012 turmoil within 7. Leaving assets outright to adult children your family. 2