I’m talking about legally and financially, not spiritually or metaphysically. Specifically, I’m talking about our assets, liabilities (debts) and minor children. We are all given the opportunity to exercise significant control over that list, but if we don’t, we’re stuck with the default option, which most often isn’t pretty.
Everyone has a will, either the one you took the time to make or the one drafted by your state of domicile. You would be surprised at the number of intelligent people who never take the time to make a will. The excuse, no matter what it is, will only sound pathetic to the heirs.
It can vary a little from state to state, but when a New Jersey resident dies without a will, the county surrogate will appoint an administrator to dispose of the estate’s assets in accordance with the law. The first thing the administrator must do is post a bond, which can cost a minimum of $100 no matter how small the estate. A bond for even a very modest estate of $100,000 will cost $500, and if the estate isn’t closed within a year, it will have to be paid every year until the estate closes.
Next, the administrator must pay the creditors. While the creditors generally cannot go after the beneficiaries personal assets, they do have a right to the estates assets. This can be particularly troublesome if the estate’s assets are illiquid, such as real estate, artwork or a business.
Of all the excellent reasons to draft a will, none is more important than minor children. Even in a household where the biological parents are the primary caregivers, a death of one of them without a will can create tremendous inconveniences. The death of both of them would create a situation bordering on catastrophe.
For the very minor inconvenience of discussing an event that is guaranteed to happen with one’s significant other, and a very modest fee, virtually all of those problems can be avoided.
Drafting a will is also an excellent time to review one’s life insurance program. Since state law prohibits minors from receiving life insurance proceeds, minor children should never be named as beneficiaries on life insurance policies. It is much more efficient to coordinate the desired beneficiaries through the will.
So while there may be a valid reason for not having a will drafted, I haven’t heard it. The time, effort and expense are all negligible in comparison to the potential mess created by dying without one.
N.B. I am not an attorney nor do I play one on TV, so nothing here should be construed as legal advice.. Consultation with a real live attorney licensed in your state is advised before acting on anything contained herein. Except the life insurance part. You can call me for that.