DO I REALLY NEED A WILL? A will is a device that lets you tell the world whom you want to get your assets. Die without one, and the state decides who gets what, without regard to your wishes or your heirs needs. So-called intestacy laws vary considerably from state to state. In general, though, if you die and leave a spouse and kids, your assets will be split between your surviving mate and children. If youre single with no children, then the state is likely to decide who among your blood relatives will inherit your estate. Making a will is especially important for people with young children, because wills are the best way to transfer guardianship of minors. You may amend your will at any time. In fact, its a good idea to review it periodically and especially when your marital status changes. At the same time, review your beneficiary designations for your 401(k), IRA, pension and life insurance policy since those accounts will be transferred automatically to your named beneficiaries when you die. A will is also useful if you have a trust. A trust is a legal mechanism that lets you put conditions on how your assets are distributed after you die and it often lets you minimize gift and estate taxes. But you still need a will since most trusts deal only with specific assets such as life insurance or a piece of property, but not the sum total of your holdings. Even if you have whats known as a revocable living trust in which you can put the bulk of your assets, you still need whats known as a pour-over will. In addition to letting you name a guardian for your children, a pour-over will ensures that all the assets you intended to put into the trust are put there even if you fail to retitle some of them before your death. If you need a Will or would like us to review one that has been drafted, give us a call at 703-267-2600.
Posted on: Tue, 06 Jan 2015 01:15:18 +0000
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