July 12, 2016
The “10 Most Gruesome Estate Planning Mistakes” series. Mistake #2: Having an “I Love You” Will
An “I love you” Will is one in which all the decedent’s assets have been left to the spouse. On paper, it might seem to be a caring, thoughtful gesture, but the reality is quite different. A Will simply passes the complex issues and problems associated with transferring and protecting wealth onto the spouse or other loved ones.
A Will Does Not Avoid Probate
There are a number of problems with having an “I Love You Will.” The main problem is that it does not avoid probate. It guarantees probate. Let me repeat that. Having a will does not avoid probate, it guarantees probate in most circumstances. Probate court proceedings (during which a deceased person’s assets are transferred to the people who inherit them) can be long, costly, and confusing. It’s no wonder so many people take steps to spare their families the hassle.
It may be possible for the first spouse to pass away, to have their estate avoid probate. Definitely, with the second spouse, when he or she passes away, that will and that estate will have to be probated.
A Will is simply an instruction letter to the probate court on how you want your assets to be passed on to the next generation. Having a valid Will is a step-up from dying intestate (dying without a valid will), because at least with a will you control who gets your property, unlike dying intestate (state law controls distribution).
Nevertheless, there are more efficient methods to pass your property to your beneficiaries at your death rather then using a Will.
Get Educated
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