Why You Need a Will - Not Just for the Wealthy

Why Estate Planning Is Important – Not Just for Wealthy

To get a will is just one segment of estate planning and estate planning is important even if you have few assets.

Estate planning addresses these key questions:

Do you want input into how you would like to be taken care of when you become incapacitated?
Do you want to be sure that your assets go to the people you choose when you die? (that's exactly why you need a will)
Would you like to eliminate or minimize needless loss of some or all of your assets when you need long-term care?
Would you like to minimize excessive taxes on what you want to give your beneficiaries (if you have significant assets)?
Do you want to prevent public exposure, costs, and delays of probate (you may need a trust rather than need a will)?

These are important questions and virtually everyone will answer ‘yes’ to all of them. Making arrangements to satisfy each question is what estate planning is all about.

But what is especially important is making arrangements to address these questions ASAP because of these four circumstances:

You never know when you will die. Therefore, you need a will at very minimum to insure your assets go to those you want and not to those determined by the state.
You never know when you will become mentally incapacitated.
You never know when you may need long-term care.
Arranging satisfactory solutions to some of these questions requires three to five years lead time--at least--before these circumstances occur!

Consequences of not addressing these questions are:

Incapacitation: You are treated in a manner you would never wish to be. Someone other than your choice determines how your money is used and distributed (the government).

Your assets go to someone not of your choice: With no will, your assets will be distributed according to state rules–not your wishes.

Without a trust or will, you must trust your current spouse to give assets to your previous children. That's not a good idea so you need a will or a trust.

Long-term care: Without long-term care insurance or a lot of wealth, paying direct long-term care costs can wipe out a small estate easily.

Probate: Public exposure on who is getting your assets can trigger legal claims and hard feelings between potential beneficiaries and other relatives. A will is always public so you need a trust to keep your matters private.