How does a Will work?

When growing up, you generally learn that you need a will to direct your assets and best wishes when you die.  Even then, many people wait too long to create one or don’t properly maintain them.  Guess what, you might be misunderstanding how they work anyways. Have you ever really been educated on estate planning or how this all works?  If not there is plenty opportunity to learn.

A Trust

If you die with a trust, your assets will be processed privately and more effectively through that trust. This could take  1- 6 months. Taxes and debts need to be settled. Costs can include Executor, Lawyers, Financial Planner, CFP, filling fees. There are different types of trust to consider with a lawyer.

A Will

If you die with a will, your assets will be processed through state probate. Fortunately, the will expresses your desires in this process.  This is especially important in transferring assets, child care, and pet care. This can take  2-15 months and cost 1-5% of your assets. Taxes and debts need to be settled. Costs can include Executor, Lawyers, Financial Planner, CFP, filling fees.  The details will be on public record. Notice will be provided so debt claimers can step forward before the estate is settled.

No Will

If you die without a will, your assets will be processed through state probate and state rules. This can take  2-15 months and cost 1-5% of your assets. Taxes and debts need to be settled. Costs can include Executor, Lawyers, Financial Planner, CFP, filling fees.   However in this case, you have offered no guidance and the courts will simply follow the laws. The details will be on public record. Notice will be provided so debt claimers can step forward before the estate is settled.

Assets transferred under a will and probate

A Will really dictates how to transfer assets you solely own and have a legal title for (car, property, boat).  In addition, it should dictate how kids or Pets be cared for.

Assets transferred by law and not under the will

Make sure your beneficiaries are updated on all accounts! If you’ve been divorced, definitely review this.

• Life Insurance transfers to the beneficiary by law (make sure it is the person you want listed!)
• Retirement accounts transfers to the beneficiary by Law
• Joint Tennancy owned property (House/Condo/Bank Account) is transferred to the remaining spouse by law. Check the deed to your property and bank accounts and understand how your ownership is listed. More details on Joint ownership is here.