Minnesota residents who have not prepared a will are not alone. In fact, about 70 percent of adults in the U.S. have no will. Although some people believe that estate planning is only for the wealthy, the truth is, everyone with a family should think about writing a will.
An important time for people to have a will prepared is as soon as they have children. Regardless of whether or not a parent has assets to leave their children, a will should be created in order to name a legal guardian. In the event that both parents die while their children are still minors, the instructions in a valid will can determine who will care for the children. In the absence of a will, a probate court judge would be responsible for naming a legal guardian, which may not be in accord with who the parents would have chosen.
In addition to handling the guardianship issue, a will can help to clarify people’s wishes about the distribution of their assets after their death. Before deciding who gets what, testators should write down the values of all of their properties. Assets distributed in a will might include bank accounts, a house and other important properties. Valuable assets like artwork or family heirlooms might also be included in the document.
An estate planning attorney can help a client in the creation of a will and other important documents such as a health care directive. In some cases, setting up a trust that contains restrictions on the timing of disbursements may be advisable if there is a concern that an intended beneficiary would not handle a lump sum distribution in a prudent and responsible manner.
Source: Market Watch, “Why wills aren’t just for the wealthy”, Bill Bischoff, March 17, 2015