We all know death is inevitable, but planning for it can feel uncomfortable. Regardless of your age, one crucial step often overlooked is creating a will. Dying intestate, meaning without a will, can lead to unforeseen consequences for your loved ones.
One result of not having a will is that the State steps in and distributes your assets according to intestacy laws. For example, Oregon law dictates who inherits your assets based on your family situation. Here’s a simplified breakdown :
- Spouse and Children: If you have a surviving spouse and children, your spouse will typically inherit a significant portion (often half), with the remaining assets going to your children.
- Spouse Only: If you only have a spouse, he or she will typically inherit everything.
- Children Only: If you have children but no spouse, your children typically inherit everything, divided equally.
- No Spouse or Children: Things get more complex here. Assets might go to parents, siblings, or other relatives depending on the specific circumstances.
But let’s imagine a scenario where you’d like a specific family heirloom to go to a particular grandchild, or a portion of your estate to support a beloved charity. Intestacy laws wouldn’t guarantee this. Additionally, if your family dynamic is complex – blended families or estranged relatives – intestacy can create friction and disputes. The probate court, tasked with overseeing the distribution under state law, can also be a slow and expensive process, further burdening your loved ones during a tough time.
A will empowers you to take control. You can clearly outline who inherits your assets, including specific bequests of personal items or cash. You can appoint a guardian for minor children and an executor who is a trusted individual to handle the legal and financial aspects after your passing. If you did not assign a beneficiary to your accounts, a will allows you to minimize probate by designating beneficiaries for certain assets.
Creating a will is a straightforward process. Consulting an attorney ensures that your wishes are legally sound and that the document meets all state requirements. Talk to your financial advisor for other ways to make sure your wishes are enacted.
While dying intestate ensures someone inherits, it might not reflect your wishes. So, don’t leave your legacy to chance. By taking the time to create a will, you provide clarity, security, and peace of mind for your loved ones, ensuring your wishes are carried out after you’re gone. It’s a small investment with a significant impact on those you leave behind.
Information in this material is for general information only and not intended as investment, tax, or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
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