One of the most common myths in estate planning is that if you have a will, a probate will not be necessary at your death. This is absolutely not true, a will is a ticket to the probate process and will direct the distribution of any probate assets. Probate assets are assets that were owned solely in the deceased person’s name without a beneficiary designation or are not payable on death or transfer on death. For more information on probate vs. non probate assets see this Article.
Why might you use a will as the centerpiece of your estate plan?
- More economical. Generally, it is less expensive to have an attorney draft a will than it is for an attorney to draft a trust. Many people will choose a will-centered plan as a good way to get peace of mind without the added cost of a trust.
An example might be a young couple with young children, using a will may allow them to name a guardian for children under age 18 and use a custodian to manage assets until a child reaches age 25. The parents know that their children will have some protection in place in case something catastrophic occurs.
- Will as a backup document. If all of a person’s assets either have beneficiary designations or are transfer and payable on death, the will may serve as a backup vehicle to catch any assets without a beneficiary designation.
It would be important to make sure that your beneficiary designation and transfer and payable on death designations are up to date.
If you have any questions about whether a will is right for you, please contact me. We will talk about your assets, your heirs and what makes the most sense in your particular situation.
