Georgia Wills…How to Protect Your Family’s Net Worth & Children
In estate planning, it’s important to understand how your property will pass with a will…and without one. You need to know what a will will and won’t do. A will…WON’T change the terms of other assets. For example, the people you’ve listed as beneficiaries on your life insurance and 401k plans will receive those assets, no matter what the will says.Is it a good idea, then, to put my spouse as primary beneficiary and my kids as secondary? Sometimes, but not always. For retirement benefits, having your spouse listed can have advantages. Listing children who are under 18 can be a problem: do you really want the 5-year-old to inherit the house? Children over 18 will have access to the entire amount of the funds immediately, which may not be in their best interest.WILL control real property, some of the time. If the property is titled with “survivorship” rights, it will pass to the other(s) automatically. If it is not held with such rights, or if it is one person’s name alone, a will controls that property.Is it a good idea, then, to add someone on title with “survivorship” rights to avoid probate? Not really. Such a transaction is fraught with unfavorable liability and tax implications. Better to have a good estate plan in place that dictates how the property should be handled.WON’T keep itself up to date. As important as it is to have a will, it’s equally important to keep it up to date. Annually, you should review the fiduciaries listed, the status of any specific items listed in the will, your financial situation (for possible tax issues) and the status of your beneficiaries.Is it a good idea, then, to write small changes directly on the will itself? Absolutely not! This could void the will in its entirety (in Georgia), and could cause litigation. Call your attorney and have it done correctly.WILL be more effective if its contents and location are known to those closest to you. Be sure to either discuss it with family members or keep it in a well-marked file with other important documents.Is it a good idea, then, to keep it in my safety deposit box? Perhaps not. Most banks have strict policies about who may have access to safety deposit boxes after the owner has died. Check with your bank and, if it sounds like their policy will cause undue stress on your family (for example, if they require a court order for access), consider keeping your documents in a fire-safe in your home.WON’T take effect before you die. It’s good to remember that a will does not provide guidance for disability or incapacity. Those situations are best addressed in powers of attorney (for finances and medical needs) or a living will.Is it a good idea, then, to have powers of attorney in addition to my will? Absolutely! The power of attorney will control what happens until you die, then the will takes over.WON’T let you avoid probate. “Probate” is the process that the will goes through in the court system post mortem. In some states, it can be expensive and lengthy. In Georgia, however, it is a relatively simple process that is not very expensive.Is it a good idea, then, to try to avoid probate? Possibly. Georgia is not a state where probate avoidance is key, but there are other reasons to possibly establish a trust or put in place other probate avoiding vehicles.WILL make your wishes known. Dying without a will leaves surviving loved ones with a mystery; even if you think your wishes are known, without documenting them, it is guesswork for your loved ones.
Creating a good estate plan documents your wishes and gives your survivors the gift of knowing they are doing what you would have wanted as far as distributing assets. Is it a good idea, then, to write down what I want for my burial/cremation, funeral, and other similar arrangements? Yes! While such details do not always have to be in the will itself, it is a great idea to document as much as you can about where your assets are and what you would like for a memorial service.To learm more how you can protect you and your family contact Wasdin & Oki Law today.
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