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  stablishing
a last will and testament allows you to provide written
instructions about how your property is to be divided
upon your death.
In your will,
you designate an “executor” or “personal representative”
of your estate who administers the probate estate. With
the supervision of the court, your representative will
then distribute your property as you have outlined in
your will.
A will is
advantageous since a court may become involved in the
distribution of your assets. By having established a
will, you will be assured things go to whom you want
them to go, and that family dynamics will not affect
your wishes.
If you have
one or more minor children, it
is critical to have a
last will and testament
so you can designate whom you
would like to be
the guardian
of your children.
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What is probate?
If your
property is titled only in your name at the time of your
death, then your property will go through a process
known as probate. If you do not have a last will and
testament, a court will order your property to be
divided among your surviving relatives according to
Pennsylvania’s intestate law. Basically, the courts, via
the state statute, decide who will receive your property
if you have done no planning. In essence, the state has
written a will for you. It typically says that if you do
not have a will, at your death, a certain amount will
pass to your spouse, and a certain amount to your
children. If you have no spouse or children, then more
distant relatives will receive your assets. Obviously,
most people want to have a greater say regarding who
will receive their property, which is why it is
important to establish a last will and testament. |
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What passes through a will?
Many people are surprised to
learn that life insurance, IRAs, annuity contracts,
jointly owned property or assets, or any financial
product that has a beneficiary designation, will not
pass through their last will and testament. The only
assets that pass through a will are individually owned
property or assets.
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If
I am married, do I need a will?
For assets not jointly owned
by the married couple, a will is necessary to direct the
passing of those assets. Many married couples set
up what is referred to as a “sweetheart will” in which
spouses leave everything to the other spouse, and then
at the death of the second spouse, to children, or other
beneficiaries. At Steinbacher, Sholder & Stahl, we
recommend the option of adding a bypass clause to the
“sweetheart will” that bypasses the spouse, if they are
in a nursing home or receiving government benefits. By
doing this, you are assuring that the individually owned
assets of the deceased are protected from nursing home
costs.
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Do I ever need to revise a
last will and testament?
Whenever a “major life
event” occurs, attorneys recommend that you review your
will. Your current legal documents may no longer be
appropriate. You may want to make changes that reflect
your new circumstances.
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