07 Nov
An estate plan can consist of many different documents or possibly just a single testamentary instrument. Those with simple estate plans often favor wills. Testators can theoretically achieve many of their most important estate planning goals with a will drafted in accordance with state statutes.
Drafting additional documents can be beneficial but may not actually be necessary for those aspiring to achieve any of the three common goals outlined below. What can a simple will accomplish?
Leaving assets to specific beneficiaries
If people die without a will or trust, then intestate succession rules guide the distribution of their property. In such scenarios, the courts may decide how to divide an individual’s property among their beneficiaries. For many people, the generalized approach of splitting the estate based on asset value may not be the best option. Wills allow testators to designate specific assets for each beneficiary to receive. This allows them to consider people’s unique life circumstances and also the emotional attachment they may have developed to certain assets.
Nominating a guardian to care for children
Worrying about what may happen to minor children can be a powerful incentive to establish an estate plan. Children who are still young when their parents die could be at risk of placement with any family member who asks for that authority. If no one volunteers, then they may end up in foster care. Parents may want to carefully consider who is capable of providing for their children’s needs. They can use a will to nominate a guardian to care for their children if anything happens to them.
Selecting a personal representative
Probate proceedings often take more than a year from beginning to end, meaning that not everyone is eager to volunteer to oversee estate administration after an individual dies. Those who do volunteer might have a questionable motive for doing so, such as a desire to control certain assets. Testators who take the time to choose their own personal representative can ensure that someone trustworthy oversees the administration of their estate. They can also limit how much their loved ones fight over their estate.
In some cases, testators may realize when drafting documents that it could be beneficial to add additional documents to a basic estate plan. Powers of attorney, trusts and advance directives can all be useful. But, drafting a will is often the most important aspect of modern estate planning. Those who have a will can feel more confident about providing guidance and support to the people who survive them.