A simple Last Will and Testament can be purchased for about $100 or even less depending upon the lawyer. It is possible to do it yourself if you have access to forms and understand the statutory formalities. Some legal document subscription providers have banks of legal forms available for little or no charge at the click of a button. We are told that a Will "speaks at death" telling the world, and the courts, what to do with our property when we die. We go to bed at night with that warm fuzzy feeling that when we die everything is taken care of and it only cost a hundred bucks!
So what's the problem? If everyone is happy with the distribution who is going to complain? Well, what if everyone is not happy with the distribution? What if Uncle Sam complains? The estate does not pass as the testator intended it to pass. The court will determine the fate of the testator's property when it reads the Will and considers any claims, exceptions and lawsuits that follow. If the document is obsolete or turns out to be defective in some manner, large chunks of the estate could be intercepted by those we meant to disinherit, former spouses, former friends and associates, their lawyers, and Uncle Sam. The effects of the unintended consequences could be ruinous to the estate and to those we intended to enrich.
"So why have a Will, it sounds like it's more trouble than it's worth."
A properly drafted last will and testament will hold up in court. An important point is that anyone considering a challenge will have to hire a lawyer to evaluate their potential claim. A properly drafted last will and testament will discourage unmeritorious and frivolous claims when the person considering the challenge is advised by their own legal counsel not to bring the claim. Bear in mind that estate plans need to be reviewed periodically because of inevitable change. The Will you made twenty years ago is simply not the Will you need today. The likelihood of an unintended consequence, a very costly unintended consequence, is just too high.
If you have a Will, consider modifying or eliminating those specific gifts of money or property that you wanted to make at the time. Reassure yourself that the executor, and any alternate executors, appointed in the Will are still good candidates for the job. With regard to specific disinheritances, consider making fixed or nominal gifts instead. Know the difference between a living trust and a testamentary trust. Know the difference between a power of attorney and a durable power of attorney. Know the consequences of a simultaneous death with the principal beneficiary under the Will. Know what the unified credit for estate and gift tax purposes is. Know the annual gift tax exclusion. Keep detailed accounts of all of your financial activities for tax purposes and visit your estate planning attorney's office at appropriate intervals for revisions to the plan.
Larry Hankins is a Las Vegas attorney in general practice for over 16 years. As a husband and father himself, he knows the time, patience, love and money required to raise a family. "Don't take chances with the future and don't wait to take the important steps you need to take today." Email Larry Hankins at larry@larryhankins.com for more insights into effective and affordable estate planning.
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