Understanding the Importance and Limitations
The idea of creating a will might seem like a task reserved for those in their twilight years, but in truth, having a will is a critical step for individuals of all ages. In this post, we’ll explore the benefits of having a will, the potential pitfalls of not having one, and the limitations of relying solely on a will to avoid probate court.
A will allows you to specify how your assets should be distributed among your loved ones after you die. This includes your bank accounts, home, and personal belongings. Without a will, your estate may be subject to intestacy laws, which dictate how assets are distributed in the absence of a valid will. Many people are surprised to learn that under Michigan intestacy law, your surviving spouse may not be entitled to 100% of your estate. This may not align with your goals and wishes for providing for your family and loved ones.
Since a will specifies how your assets should be distributed, it provides a platform for making charitable gifts. You can allocate some or all of your estate to philanthropic organizations or causes that matter to you.
A will also allows you to put someone in control of your estate by naming a personal representative who will be responsible for collecting, managing, and distributing your probate assets.
Importantly, for parents of minor children, a will is essential for appointing a guardian. This ensures that your minor children are cared for by someone you trust in the event of your untimely death.
The absence of a will is the absence of clear instructions to the people you leave behind. This can lead to confusion and potential disputes among family members. A will provides clarity, helps prevent conflicts, and ensures that your wishes for distribution are followed.
As important as a will is to a comprehensive estate plan, it has its limitations. While a will provides guidance, it does not inherently avoid the probate process. In fact, generally, a will must go through probate court. A will is a roadmap for the personal representative and probate court judge to follow, not a separate vehicle for the management of assets.
Probate proceedings are a matter of public record, meaning details of your estate, beneficiaries, and assets become accessible to the public. The process can also be time-consuming, with many probate estates remaining open for over a year. Many people seek out probate avoidance because avoiding probate can simplify administrative matters for the loved ones you leave behind. Usually, a will alone will not avoid probate court.
A will also does not provide the same potential for asset management or asset protection that a trust can provide. This is the biggest difference between a will and a trust. While a trust is not the right solution for everyone, leaving assets outside of trust has the potential to expose your estate to potential creditors, the nursing home, or legal challenges.
Consequently, having a will is a fundamental step in estate planning, offering you control over the distribution of your assets. However, it’s essential to recognize the limitations of relying solely on a will.
At Curcio Law, PLLC, a Michigan estate planning law firm, our goal is achieving yours. We specialize in tailoring estate planning solutions to your particularized goals and needs. There is no one-size-fits-all estate planning solution. Contact Curcio Law, PLLC, today at (616) 226-1861 to schedule a free consultation with our experienced estate planning attorney to discuss a comprehensive, tailor-made estate plan to help you protect what you have for the people you love.
