Estate Planning - Who Needs It?
Most
people need estate plans, however, people with large estates,
spouses, children (particularly special needs children),
are especially in need of such planning. While most states
have statutes that act like a will in the event you do
not have one, these statutes are ridged, superficial,
and do not always coincide with the wishes of the deceased.
For
example, what happens if you die without a Will while
you are:
Married
with children: Unfortunately, many people incorrectly
believe that the surviving spouse/parent would take
all their deceased spouse's property, especially if
the children are young. More often than not, this is
not the case. In this situation, the law of most states
awards one-third to one-half of the decedent's property
to the surviving spouse, and the remainder to the children,
regardless of age.
There
are generally no statutory provisions to restrict
a child's access to such money for important items
like an education, home, or business venture. Unfortunately,
in most states, a child will receive their share of
the deceased spouse/parent's estate upon turning age
18. In most instances, this is the most inopportune
time for an individual to receive any kind of lump
sum disbursement of money as it is generally quickly
and frivolously spent on impractical items.
Married
with no children: Again,
many people incorrectly believe that the decedent's
surviving spouse would take all. Most states, however,
give only one-third to one-half of the estate to the
surviving spouse. The remainder generally goes to
the decedent's parent(s), if alive. If both parents
are dead, many states split the remainder among the
decedent's brothers and sisters.
Single
person with children: When a single person with
children dies without a Will, state laws uniformly
provide that the entire estate goes to the children.
Again, this is the most inopportune time for an individual
to receive a lump sum disbursement of money. Such
disbursements are best spread out over time until
the child reaches age 25 or greater, or allow for
such disbursements prior to such ages for an education
or home. Single person with no children: In this situation,
again, most state laws favor the decedent's parent(s)
in the distribution of his/her property. If both parents
are deceased, many states divide the property among
the brothers and sisters. If no brothers or sisters
exist or survive, most states begin looking to the
next closest living relatives beginning with aunts,
uncles, cousins, nieces or nephews.
Find
Estate Plan For Your State!
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