Why People Don't Have Wills
With all that's been written about the advantages of "will planning," it's puzzling to discover that nearly half of American adults do not have a will—a statistic that has remained steady for decades.
In some instances, people find it uncomfortable to contemplate their own mortality. Others don't like the thought of talking with an attorney or fear that it will cost too much. Then there is simply the difficulty of deciding who gets what—and how the beneficiaries are going to react. Put all these factors together and procrastination is often the result.
Further complicating the matter are the misconceptions that many people have about wills. Here are some of the more common ones along with the reasons why they are invalid:
Don't Have Enough Assets
This is often cited as a reason but seldom valid. Actually, the smaller one's estate is the more important it is to make sure that assets are distributed with the least cost. In a small estate, intestacy might lead to inefficiencies that would only deplete assets further.
Spouse Will Automatically Get Everything
This is a dubious assumption at best. Without a will, the laws of intestacy will come into play. And, under some state laws, the distribution of the estate might be split between the surviving spouse of a second marriage and the children of the first marriage.
The Property I Own Is Jointly Held
True, jointly held property with rights of survivorship passes outside the will. But not all assets are jointly held. What's more, should both parties be killed in a common disaster, then the assets would be distributed according to the laws of intestacy unless their wills direct otherwise. The same result occurs when one spouse dies, then the other spouse dies without having subsequently made a will.
A Single Person Doesn't Need A Will
The laws of intestacy also apply to the unmarried—including widows, divorced people, and those who have never married. Who knows what relatives—including unknown or disliked relatives—may share in the estate of an unmarried person who dies intestate.
In some instances, people find it uncomfortable to contemplate their own mortality. Others don't like the thought of talking with an attorney or fear that it will cost too much. Then there is simply the difficulty of deciding who gets what—and how the beneficiaries are going to react. Put all these factors together and procrastination is often the result.
Further complicating the matter are the misconceptions that many people have about wills. Here are some of the more common ones along with the reasons why they are invalid:
Don't Have Enough Assets
This is often cited as a reason but seldom valid. Actually, the smaller one's estate is the more important it is to make sure that assets are distributed with the least cost. In a small estate, intestacy might lead to inefficiencies that would only deplete assets further.
Spouse Will Automatically Get Everything
This is a dubious assumption at best. Without a will, the laws of intestacy will come into play. And, under some state laws, the distribution of the estate might be split between the surviving spouse of a second marriage and the children of the first marriage.
The Property I Own Is Jointly Held
True, jointly held property with rights of survivorship passes outside the will. But not all assets are jointly held. What's more, should both parties be killed in a common disaster, then the assets would be distributed according to the laws of intestacy unless their wills direct otherwise. The same result occurs when one spouse dies, then the other spouse dies without having subsequently made a will.
A Single Person Doesn't Need A Will
The laws of intestacy also apply to the unmarried—including widows, divorced people, and those who have never married. Who knows what relatives—including unknown or disliked relatives—may share in the estate of an unmarried person who dies intestate.
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