Paul Ferraresi

Many married people have never prepared a will, although they recognize that this is something that should be done. Perhaps the rather morbid title, “LAST WILL AND TESTAMENT,” has caused them to delay taking action.

If you do not prepare a will, the state will draw one for you, and chances are very good that your survivors will not like the provisions. The legal term for dying without a will is “intestacy,” and the distribution of your property will be based on the intestacy laws of the state in which you reside at the time of death.

In the absence of a will, the Probate Court will appoint an administrator, such as a family member or local attorney. Then after a complicated procedure, all of your assets will be distributed according to the state’s formula.

Your estate consists of personal property (furniture, jewelry, clothes, automobiles), investments (cash, savings, securities), real estate, employee benefits (group insurance, retirement or profit sharing) and other items such as the proceeds of a lawsuit against someone who accidentally caused your death.

You cannot rely on joint property title as a substitute for a will because it does not solve problems arising with the second death. Some forms of joint title do not pass entirely to the surviving spouse.

Having a will drawn can prevent family disputes, and will give you the opportunity to be certain that your property will be distributed promptly to the parties designated as beneficiaries.

Your will should designate an Executor to carry out your bequests efficiently and promptly and with less expense than if there had been no will. The will should also provide for flexibility in the administration of your estate. You may also wish to provide special bequests to non-profit organizations.

Having a will prepared will also help establish a relationship with an attorney, which could be extremely valuable in the future. Naturally, a will should be periodically reviewed and updated to reflect changing personal circumstances and new tax laws.

I found a great article by Joseph Gelband on estate planning that I want to share with you.

The federal estate tax may or may not become history after 2009; Congress is debating its fate. Meanwhile, it remains a subject worth tackling because no matter what your age or who is in charge of Congress several years hence, it’s better to be ready than to be caught unprepared. Read the rest of this entry »

Here are seven tips I use to help my clients of any age make life easier for those they leave behind.

• The will names an executor and, if you have children under 18, is essential for naming a guardian. A will is not the best document to use. The time delays and probate costs hurt the family almost as much as the departed loved one. If you have gross asset values (no deductions for liens or encumbrances) in excess of $100,000 it makes economic, business and emotional sense to have a Living Trust drafted (Revocable Intervivos Trust).
• Items to include are a net worth statement, contact list of relevant parties, last wishes, valuables list and a key documents reference for originals.
• Arrange for a financial institution to hold them. This will keep assets from being overlooked when the estate is settled.
• Another option is to set up an investment account with pay-on-death designation to the executor.
• Ethical wills can tell a family history, share values, explain estate planning decisions or express feelings toward family members. Two sites that offer helpful advice are www.ethicalwill.com and www.personalhistorians.org.
• At least once every five years, you should meet with everyone significantly involved in the estate. At a minimum, this would include the executor, trustees and primary heirs to make sure there are no surprises later on.

One of the first steps in this whole process is to assess your values before you value your assets. Next, you should follow an Empowered Wealth System and, lastly, develop a Family Empowered Bank. Going through this experience will be one of the most insightful experiences you go through. Each client I work with on these steps are forever greatful.