Retirement & Financial Planning Report

In some states, half of all your assets may go to your children if you die without a will. Minor children may become wards of the state, and your surviving spouse may have to account to a court for every penny spent on the children’s behalf. No matter what else your estate plan includes, you must start out by drafting a will. In a will you can spell out how you want your assets distributed; if you don’t prepare a will, your state government will be happy to create one for you–and you probably won’t like the results. When you draw up a will, you’re in control.


Without a will, you die “intestate” and your estate will be distributed under the laws of your home state. If large amounts of money are involved, the court usually will appoint an attorney to represent the children–at the children’s expense–and the paperwork will mount up. If your children are minors, when they come of age they may receive all of the assets they inherited from you, with no restrictions. They can then demand a complete accounting from your spouse and, if they’re displeased, they can sue. Other relatives of yours, including your parents, may have no claim on your estate. Moreover, if your spouse remarries, the new husband or wife may be entitled to those funds your spouse inherited from you, with no obligation to use them on behalf of your children.


Bottom line — get cracking on developing a will with competent legal help. For more information on how to set up a will and protect your assets, we have published The Estate Planning Guide for Everyone. You can get more information about this brand new book in our publications section of our website: https://www.fedweek.com.