WILLS
Do I need a will?
Posted on Tuesday, September 06, 2011 3:00 PM
Many people think that they do not have "enough" to have a will or do any Estate Planning. Nothing could be further from the truth. Who needs a will? Anyone who is married, single, divorced, has children, doesn't have children, owns anything, likes to donate to charity, doesn't like their siblings, you get the picture...., If you want to have a say in who gets your things and money in the event of your death, you need a will.
Also, if you want to appoint a guardian for your minor children in Minnesota - a will is the only way to do so without a court process. If you do not use a will to voice your preferences, the court will say where your assets go and who watches over your children and the money they may receive from you.
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Don't let the tail wag the dog:Taxes are not the only reason to have an estate plan.
Most Americans are not in a situation of worrying about paying estate taxes upon their passing. In Minnesota you can pass your heirs, charities and special loved ones up to 1 Million dollars before ever having to pay estate taxes. The IRS allows you to pass up to another 4 Million dollars upon your death before worrying about being taxed at the Federal level. many people ask me with a smirk on their face- "Why do I need to bother with a will or estate plan? - I will never have to pay taxes".
My response is always to ask "What would your 5/10/16 year old child do with $100,000.00?" That is when they stop smiling. Most people who own a home and have a little bit of life insurance and a few odds and ends here and there have an estate of a sizable amount. A basic estate plan, including a Will or Revocable Living Trust, a Health Care Directive and Power of Attorney can help you accomplish the following : More
