Wills
It is estimated that 60-75% of Americans die without a will. Without a will, a person’s estate is handled according to Texas laws of intestacy. Sometimes the law of intestacy is sufficient, but often it divides an estate in a manner that the deceased would never have intended. If a person does not have a will, he or she has no choice in how his or her property is distributed. Instead, the person’s property is distributed according to the makeup of his or her family alone. Nothing else is considered by the laws of intestacy.
For most people, creating a will is not about money or property distributions. People create wills to alleviate the stress placed on their family members during difficult times. They take comfort in creating a clear picture of how their desires and intentions will be carried out after they are gone. Also, many people use a will or an estate plan as an opportunity to make a memorable gift or show loved ones they care in this final way.
Another important aspect of a will is the assurance that proper care will be taken care of one’s children. For a single parent, a will allows them to designate a guardian for their children. Incorporation of a trust to provide for the person’s minor children is also a common reason for a will. The great thing about a trust is that it can be customized to fit an individual’s wishes. A trust can provide long-term support, a college fund, pay for medical needs, and can also be made conditional.
Additionally, people with larger estates can gain substantial tax advantages by using a properly drawn up will and trust. Special trusts can be used to avoid taxes on estates over $5,000,000.00. Currently, estates over $5,000,000.00 are taxed at a rate of 35%.
Warning: Internet Wills
There are online companies making generic, form wills without the oversight of an attorney. These wills are often contested and have trouble holding up under the scrutiny of a court. Wills are tricky because they must be written and carried out very precisely. Even in the act of signing a will, there is a specific process that must be undertaken to ensure the will is properly enacted. Forms drafted without an attorney’s direction are not tailored to the needs of the individual client, and they are not likely to be compliant with the most current laws. Often, the costs associated with a legal battle over a form will purchased online or at a bookstore are far greater than the cost of having a will drawn up by an attorney.