Posts Tagged A Will Is Not Enough

Another reason a will isn’t enough is that the ownership of many assets transfers outside the will, including life insurance, annuities, retirement accounts like IRAs and 401(k)s, jointly-owned property and more. The beneficiary designations of these assets, not the will, determine how they will be distributed. Many IRS rulings and court cases have concluded that the owner’s statements and intent in his or her will do not matter if they contradict what was written on the beneficiary designation form. This is why it is so important to review your beneficiary designations periodically to ensure they reflect your wishes now, not what you wanted when, for example, you opened the IRA 20 years ago. Many families utilize trusts in their estate plans. These provide a greater level of protection and flexibility than what a will alone can provide. For instance, a revocable living trust allows your estate to avoid probate entirely-and

A will can help you accomplish a number of important planning goals. For instance, it allows you to control how your assets are distributed after you pass away. Without a will, your assets will be distributed according to what is known as intestate succession, in accordance with strict guidelines set by the state. What you “would have wanted” is irrelevant to the state. Your assets must be distributed, and the state has devised a formula to do so. A will also gives you control over how your minor children will be raised if something terrible happens to you and your spouse. Your will allows you to name people of your choosing-people you trust-to raise and care for your children if you cannot. Without a will, the court will decide who has control over your children. The court’s decision could lead to your children being raised in a place and manner