Hopkins & Holmes

Where There's A Will, There's A Way

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INTRODUCTION
A will can help reduce costs and complications for your family or heirs when you die. Besides providing instructions about gifts of your property-like your home, car, investments and jewelry- your will can provide instructions for payment of your debts, selection of an executor for your estate, and appointment of a guardian for your minor children. Without a will, your property will be distributed according to state law and a court may select an administrator for your estate and a guardian for your minor children. Your lawyer can help you prepare a valid will that minimizes taxes and reduces the time and expense of handling your estate.

DISADVANTAGES OF DYING WITHOUT A WILL
If you don’t make a will, you will have given up your right to decide who inherits your property. Your property will be distributed by operation of law, which might be quite different from what you would have wished. For example, if you are married with minor children, in some states your property will be divided between your spouse and children, even though you might prefer to set aside some property for the care of your parents. In most states, your property will be transferred to the state if you die without a will and are not survived by relatives, even though you would have preferred to leave it to a friend or charitable organization. And without a will, you can’t disinherit heirs.

If you leave no will, you will lose the opportunity to select a guardian for any minor children and an executor for your estate. Court-appointed administrators and guardians may not be the family member or friend that you would have chosen to handle your affairs.

Dying without a will can be costly and may complicate the transfer of your property to your heirs. For example, the estate may have to pay bond premiums if there is no will stating that you don’t require executors and guardians to post a bond. In addition, estate administrative proceedings without a will may delay transfer of your property to your heirs.

SELECTING AN EXECUTOR
You should select an executor in your will. An executor locates heirs, lists property, pays debts, and distributes property to your heirs. A relative or friend can serve as your executor, but you may want to consider using a professional executor (such as a bank or trust company) if you have a large or complicated estate. An executor should be someone who is familiar with managing property, financial matters, and record-keeping. Before naming an executor, confirm that the person is willing to serve. Your lawyer can help you select the best executor. As noted above, your will can state that the executor is not required to furnish a bond, thus saving your estate this expense.

APPOINTING A GUARDIAN
If you have children under 18, you should name a guardian in your will. Otherwise, if you and your spouse die at the same time without such an appointment, a court will select a guardian to care for your children and manage their inheritance until they become adults. Your will can also create a trust to control the property transferred to your children. A trust is useful if you are concerned that the children may lack the maturity to handle their inheritance after age 18. Your lawyer can help you to select a guardian and create a trust in your will that protects your children and your wishes.

MAKING YOUR FUNERAL ARRANGEMENTS
You can include instructions for your funeral arrangements in your will. However, you may wish to put these instructions in a separate letter. Give a copy of the instructions to your executor or a family member or friend to avoid delays when you die. You can also include instructions about gifts of your body organs to hospitals for research or transplants. Such instructions for gifts of body organs can be noted on your driver’s license or a separate donor card that you can carry on you.

“REDUCING PROBATE COSTS
Probate costs include court fees, bond premiums and the fees if professionals who assist your executor with the administration of your estate. We can help you reduce probate costs with estate planning tools like family LLC’s joint ownership, living trusts, lifetime gifts, and business recapitalization.

PRESERVING THE PEACE
A will not only gives you and your family peace of mind but it also helps preserve the peace. By resolving any potential property disputes in advance you can greatly reduce any of your family’s reason to fight over your estate or any of your included pieces of property preventing conflict can be a wonderful legacy to your heirs.

DO YOU NEED A NEW WILL?
You may need to change your will if you have moved from another state, married, divorced, had a child acquired substantial property, or suffered the loss of a loved one since it was done. Tax law changes may also require you a will to be updated. Read your will at least once a year to consider changes. You can make the changes by writing a new will or by preparing an amendment to your existing will called a codicil. A new will is best if there are many changes. A codicil may be appropriate for a small change, but it must be made with the same formalities as a new will – crossing-out or writing inserts onto your will might invalidate the whole thing.

CONCLUSION
You should have a will if you own any property- a home, a car, bank accounts, stocks and bonds, retirement benefits, jewelry, clothing, household goods, and so on. A will lets you distribute your property as you want with a minimum of costs and taxes. It is an opportunity to select an executor for your estate, a guardian for your children, establish trusts and dispense with costly bonds. If you don’t have an up to date will, ask us to send you a will work sheet or contact us to draft.

We can help you plan your will and explain the tax consequences of your various option. We can also help you comply with the detailed requirements for a valid will, see that your property is distributed as you wish, and reduce estate taxes and probate costs. The legal fees are usually well spent and are usually much less than the added costs and taxes that would result from dying without a will.

Be sure and ask about Living Wills, and Medical Powers of Attorney. Feel free to contact our office to ask for a free Will Worksheet which will help us advise you in drafting your Will.