Importance of Having a Will

All the coverage that appeared relating to the death of Michael Jackson and the settlement of his estate illustrate something people typically procrastinate in accomplishing, the drafting of wills and trusts. Let's face it. Most of us don't care to spend time contemplating our own demise and as a result the matters of wills and estates aren't at the top of most people's to-do lists. Still for those serious about personal financial planning, consideration should be given to wills and probate.

A person that dies who hadn't given any thought to drawing wills and trusts, dies "intestate" and their estate becomes subject to "intestacy" laws of the state in which they resided. Since one responsibility of state governments is to bring order from chaos in the everyday operations of society, intestacy laws are simply where that comes into play with regards to the settlement of estates. Every state has intestacy laws and there are both similarities and variations from state to state. You can find out information on the intestacy laws and rights of succession for your own state by visiting the CCH Financial Planning Toolkit web page. There you will find a clickable map of the United States. Clicking on your state will take you to a page that provides the specific intestate succession provisions for your state.

When it comes to wills and probate, making no choice is actually in a real sense making a choice. Making a choice to allow the intestacy succession laws of your state decide how and to whom your estate is distributed. As a resident of Texas, I will use Texas Intestate Succession Laws to offer a few examples of what happens when a person dies who failed to consider wills and trusts as part of their personal financial planning.

In Texas a surviving spouse gets one-third of the personal property and an interest in one-third of the land in the estate with the remainder going to the decedent's children. If there are no children, then the surviving spouse is entitled to all of the personal property and one-half of the land in an estate with the balance passing in order to the decedent's parents, siblings, grandparents or to the state if none of these survive the deceased.

As one example, if a married man with minor children were to die in Texas without a will, his wife would receive only one-third of the personal property and an interest in one-third of the land in his estate. The balance would be distributed in equal portions to his children who being minors would likely have their shares held up in trust for years. In such a situation, the wife would likely have need of but be denied access to the full estate. In most cases, the man likely would have chosen for his wife to inherit the entire estate and then what remained would be distributed to the children as adults upon her death.

Consider the case of a single woman dying in Texas without a will. Absent a spouse and children, her estate would be distributed in equal shares to her parents which might be what she would have chosen but perhaps she would have rather had a portion of her estate distributed to her siblings, nieces, nephews or a favorite charity.

As you can see from these two examples, dying intestate is less likely to result in your wishes being carried out with respect to the distribution of your estate which is why wills and estates are such an important issue. Having a will is the only sure way to see that your estate is distributed exactly as you wish.

There are a number of ways to prepare a will. You can purchase computer software like Quicken Will Maker Plus and you can even prepare wills online at sites like Legal Zoom.com. And then of course there is the traditional method of having a will drawn up by an actual attorney. According to an article published by The New York Times, estate planning costs can vary widely depending upon the complexity of a particular estate. Costs for having a will drawn up by an attorney can cost from $350 - $1,000 and as a result many are turning to the lower cost option of using a wills online service where a standard will can be completed for as little as $69.00. Even if you decide to use a wills online service to save money, given the complexity of estate laws it is best to have such a will looked over by an attorney to make certain it complies with the law. Otherwise you run the risk of your will being legally deficient and deemed void.

Regardless of how you choose to do it, where there's a will, there's a way, the only way to be certain that your estate is distributed in exactly the manner you wish. Consideration of wills and estates is also the responsible thing to do with regards to providing for the security of your family in the event something should happen to you. According to figures published by the Centers for Disease Control and Prevention (CDC), in 2006 there were a total of 213,617 deaths in the United States from accidents alone. It is great to be optimistic, but wisdom dictates preparing for the worst when it comes to responsible personal financial planning.

Sources:

"Dying Without a Will". CCH Financial Planning. July 2, 2009.

"Texas Intestate Succession Laws". CCH Financial Planning. July 2, 2009.

"Wills & Estate Planning". Nolo. July 2, 2009.

Larson, Christine. "A Need for a Will? Often, There's an Online Way". The New York Times Online. July 2, 2009.

"Legal Zoom Wills". legalzoom.com. July 2, 2009.

"Accidents and Unintentional Injuries". CDC. July 2, 2009.