Are You Happy with Your Will?

The threshold question is whether you have a Will. Do you? This is a trick question because the answer is "yes." Everyone has a Will. If you haven't signed a Will or a Will replacement, such as a Living Trust, state law will direct who will be in charge of the distribution of your estate and who will receive your estate, including all property and investments.

Distributions are often made by reason of provisions in a contract, such as a beneficiary designation on a life insurance policy or an IRA. Distributions can also be made by joint ownership, or by POD (payable on death) or TOD (transfer on death) designations on an account or an investment. Real estate also can be transferred by a beneficiary deed. These provisions are often referred to as Will substitutes.

What happens if none of these apply? What if a home or an account is titled solely in the deceased person's name? State law directs the distribution. Generally, a spouse, children, or other descendants will inherit first. Collateral heirs will inherit if there are no children, spouse or other descendants. To specify who is to be in charge of your estate and who will be the ultimate beneficiaries, a Will is necessary or state law will control. In a Will, a personal representative (formerly called an Executor) can be named. The specific beneficiaries can be identified as well as what each is to inherit.

For a Will to be the document through which title is transferred, it must be accepted by the probate court. To avoid this process, many people choose to replace a Will with another Will substitute, a Living Trust. A Living Trust can incorporate all the provisions of the Will while not being subject to the probate process.

Whether there is a Will, a Living Trust, beneficiary designations, or nothing, there is a plan (a Will, a Will substitute, or state law) in place upon death. If you aren't happy with the plan that state law imposes on your estate, you must set up a Will or a Will substitute to carry out your wishes.

For more information on including ICS in your Will, please contact ICS at 520-297-6049.