Wills Create A Solid Foundation
For Effective Estate Planning
By Mark A. Landau, Esq.
Guest Contributor
The statistics are staggering. A recent study found that 58% of American adults do not have a Last Will and Testament prepared- the most basic component of an estate plan. A person who dies without a written will is declared "intestate." The court then names a personal representative for the estate, and state laws often determine how assets are distributed.
Why anyone would allow the laws of the state and the decisions of a probate court to determine how their estate is to be settled and distributed, as well as the care for any minor or adult-handicapped children, is troublesome.
Why Write a Will?
A traditional will is a legal document that becomes public at the death of its maker. It contains instructions that take effect after an individual's death to distribute property, pay debts, and make arrangements for burial, estate and inheritance taxes. It also names the executor of the deceased person's estate, who will supervise the distribution of assets and the payment of expenses and debts through the estate.
To avoid disputes that can be costly and divisive for families of the deceased, wills should be drafted by a competent attorney, signed, witnessed and notarized. In addition to naming the executor, the will can serve several other purposes:
• If an individual dies while responsible for minor children, the will specifies a choice of guardian.
• The will provides instructions for financial assets that pass through its terms. Not all assets pass through a will. For example, most insurance benefits and retirement plan assets pass directly to a named beneficiary.
• The will usually is the best instrument for dividing personal property among heirs, including homes, cars, furniture, heirlooms and tangibles such as jewelry and coins.
• The will can specify charitable gifts to be made post-death, or it can create a trust that takes effect at death to hold specific assets or properties. (A trust created by will is called a "testamentary trust.")
• The will can direct that specific debts, costs or taxes are to be paid from the estate, rather than from the bequests of heirs.
• At least two copies of the written will should be made and stored in safe places that are known and accessible to the maker's attorney, and the executor. Every will should be updated periodically to reflect changes in circumstances or wishes.
In summary, writing a will is perhaps the best (and simplest) way to begin focusing on estate planning goals and needs. It doesn't take much time, isn't complicated, and doesn't cost very much. This simple document - in writing with notarized signatures - can legally assure that wishes of the maker are carried out and potentially save estates and heirs vast amounts of trouble and costs.
If you would like to learn more about developing a comprehensive estate plan then please join us for an Estate Planning Workshop at the office of Dugalic & Landau, PC at 150 N. Radnor Chester Rd., Suite F200, Radnor, PA 19087 on Thursday, July 28th at 6:30 p.m.
(Mark A. Landau, Esq. is a licensed attorney in PA and NJ and practices in the area of Estate Planning and Administration, Special Needs Planning, Medicaid Planning and Asset Protection Planning. Additional information about Mark and his firm can be found at www.dugalicandlandau.com or by calling 484-412-8242.)
For Effective Estate Planning
By Mark A. Landau, Esq.
Guest Contributor
The statistics are staggering. A recent study found that 58% of American adults do not have a Last Will and Testament prepared- the most basic component of an estate plan. A person who dies without a written will is declared "intestate." The court then names a personal representative for the estate, and state laws often determine how assets are distributed.
Why anyone would allow the laws of the state and the decisions of a probate court to determine how their estate is to be settled and distributed, as well as the care for any minor or adult-handicapped children, is troublesome.
Why Write a Will?
A traditional will is a legal document that becomes public at the death of its maker. It contains instructions that take effect after an individual's death to distribute property, pay debts, and make arrangements for burial, estate and inheritance taxes. It also names the executor of the deceased person's estate, who will supervise the distribution of assets and the payment of expenses and debts through the estate.
To avoid disputes that can be costly and divisive for families of the deceased, wills should be drafted by a competent attorney, signed, witnessed and notarized. In addition to naming the executor, the will can serve several other purposes:
• If an individual dies while responsible for minor children, the will specifies a choice of guardian.
• The will provides instructions for financial assets that pass through its terms. Not all assets pass through a will. For example, most insurance benefits and retirement plan assets pass directly to a named beneficiary.
• The will usually is the best instrument for dividing personal property among heirs, including homes, cars, furniture, heirlooms and tangibles such as jewelry and coins.
• The will can specify charitable gifts to be made post-death, or it can create a trust that takes effect at death to hold specific assets or properties. (A trust created by will is called a "testamentary trust.")
• The will can direct that specific debts, costs or taxes are to be paid from the estate, rather than from the bequests of heirs.
• At least two copies of the written will should be made and stored in safe places that are known and accessible to the maker's attorney, and the executor. Every will should be updated periodically to reflect changes in circumstances or wishes.
In summary, writing a will is perhaps the best (and simplest) way to begin focusing on estate planning goals and needs. It doesn't take much time, isn't complicated, and doesn't cost very much. This simple document - in writing with notarized signatures - can legally assure that wishes of the maker are carried out and potentially save estates and heirs vast amounts of trouble and costs.
If you would like to learn more about developing a comprehensive estate plan then please join us for an Estate Planning Workshop at the office of Dugalic & Landau, PC at 150 N. Radnor Chester Rd., Suite F200, Radnor, PA 19087 on Thursday, July 28th at 6:30 p.m.
(Mark A. Landau, Esq. is a licensed attorney in PA and NJ and practices in the area of Estate Planning and Administration, Special Needs Planning, Medicaid Planning and Asset Protection Planning. Additional information about Mark and his firm can be found at www.dugalicandlandau.com or by calling 484-412-8242.)
