Perils of Dying Without a Valid Will

Having a valid Will is essential for ensuring that your assets are distributed according to your wishes after you die. Despite this, it’s estimated that only 44% of Americans over the age of 55 have made Wills, and a mere 22.5% of those younger than 55 have done so. This means a significant portion of the population is at risk of dying intestate, or without a Will, leading to numerous complications for their loved ones.

What is a Will?

A Will is a written document that expresses your wishes regarding the distribution of your property and the care of any minor children after your death. It must be signed by you and two or more witnesses, and usually notarized by a notary public to be considered valid.

Is a Will Important?

Yes, a Will is critically important. Here’s why:

1. Control Over Your Assets: A valid Will allows you to decide who inherits your property, when they inherit it, and who will manage your estate as executor. Without a Will, you lose this control, and state laws will dictate the distribution of your assets, which may not align with your wishes.
2. Caring for Dependents: If you have minor children or adult children with special needs, a Will lets you designate their guardians and outline how they should be cared for. Without this, the court will decide, which may not reflect your preferences.
3. Cost and Time Efficiency: A Will can help reduce the costs and time involved in the probate process, ensuring a quicker and less costly distribution of your assets. Without a Will, the process can become prolonged, expensive, and fraught with conflicts.
4. Avoiding Family Disputes: A clear, legally valid Will minimizes the chances of disputes among family members over your estate. It provides a clear set of instructions, reducing misunderstandings and disagreements.

What Happens If There Is No Will?

When someone dies without a Will, their estate is subject to intestate succession laws, which vary by state. Here’s a general overview of what can happen:

1. State-Determined Distribution: The probate court will follow state laws to distribute assets owned solely in the decedent’s name. For example, in states like Kansas and Missouri:
• If the deceased was married with no children, everything goes to the surviving spouse.
• If there are both a surviving spouse and children, the estate is typically divided equally between them.
• If the deceased was unmarried, the children inherit the entire estate.
• If there are no children, the estate goes to the parents, and if the parents are deceased, then to the siblings.
2. Appointment of Guardians: The court will appoint guardians for any minor children or children with special needs, which may not align with the decedent’s wishes.
3. Potential for Unwanted Outcomes: Assets might end up with relatives the decedent would not have chosen, and important possessions could be sold to cover debts, causing emotional distress to surviving family members.
4. Increased Costs and Delays: Intestate estates often face higher legal fees and longer probate processes, adding financial and emotional strain on the family.

Which Assets Pass by Intestate Succession?

Not all assets are subject to intestate succession. Some pass directly to a named beneficiary or co-owner, regardless of the presence of a Will. These include:

• Property in a living trust
• Life insurance proceeds with a named beneficiary
• Funds in an IRA, 401(k), or other retirement accounts with a named beneficiary
• Securities in a transfer-on-death account
• Real estate owned jointly or with a transfer-on-death deed
• Vehicles with transfer-on-death registration

However, if there’s no Will and the named beneficiary is not alive, these assets could fall into intestate succession, potentially leading to unintended distributions.

Creating a valid Will is a vital step in ensuring your assets are distributed according to your wishes, and that your loved ones are cared for after you pass away. It provides peace of mind, reduces potential conflicts, and ensures a smoother, less costly probate process. Dying without a Will leaves your estate’s fate in the hands of state laws and courts, which can result in outcomes that are contrary to your desires and cause additional stress and financial burden for your family. Don’t leave your legacy to chance—make a Will and keep it current.

Looking for assistance? We can help!

If you are looking for a guide to help you plan your estate and retirement, The Marshall Law Office and Benchmark Financial Group and can help. It all starts with gathering your information and discussing your goals.

The Marshall Law Office will put together an estate plan according to your specific situation and desires. Upon completion, you’ll receive a binder containing all signed, witnessed, and notarized documents and directives, including your Will and Trust (if applicable).  To start the process, contact Linda Marshall 913-951-8395 or email MarshallLaw.Linda@outlook.com.

Benchmark Financial Group will help you maximize your income in retirement.  With the right strategy, you may get your income equal to or exceed your pre-retirement net income.  To get started, schedule an appointment today with Benchmark Financial Group by filling out the form online or calling David Raetz at 913-534-8256 to discuss your financial needs. Benchmark Financial Group is happy to help you navigate your options and determine the best path to move toward your financial goals.

*Securities and Advisory Services Offered Through CreativeOne Securities, LLC  Member FINRA/SIPC and an Investment Advisor.  Benchmark Financial Group, LLC and CreativeOne Securities, LLC are not affiliated.

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