by Dave Kutcher
Having been in the business of working with folks at or near retirement for the past 35 + years, we often find people working on their “estate” planning. In general terms, working on or considering how they want to leave their assets to their heirs upon death.
People postpone writing a “Last Will and Testament” for lots of reasons. The fact is, though, writing one may be one of the most important steps to avoiding what you fear most, your assets being distributed other than as you would have intended.
In simple terms, a Will is a legal document that dictates how you want your assets to be distributed when you die. It can be changed whenever you desire. The State in which you live dictates the requirements that make a Will valid and will include such requirements as how many witnesses there must be, whether it can be typed or handwritten, etc. The rules are consistent State to State, however, and requirements are not difficult to follow.
Any person who owns property should have a Will. If you die without a Will, the State will oversee the disposition of your estate through probate court. The administration and closing of your estate will endure unnecessary delay and expense and your assets will be of public record, not to mention that the assets may be disposed of in a very different way than you might have otherwise intended.
When you die with a Will in place, the executor you named in the Will typically presents the Will to the local court and asks the court to authorize the administration of the estate. This process is called Probate.
It is important to remember that not all assets in your estate pass through your Will. Jointly held property, for example, will pass directly to the joint owner. Assets where you have named a direct beneficiary do not pass through your Will. These types of assets include Life Insurance and Annuity contracts that include named beneficiaries… your IRA might be another example.
A basic estate plan really should include a little more complexity to get the job done right. We see those basics as including not just your Last Will and Testament, but also a Testamentary trust (Trust created through your Will), a revocable Living Trust and a Health Care Proxy. The more complex your situation, the types of assets you own and the make up your family may dictate far more involved planning tools and resources, but it would ideally benefit you to at least get started.
We recommend you visit with a local attorney who specializes in Estate Planning. Engaging with a professional will help you immensely. If you want to assure your assets get to where you want them in the most efficient and tax advantaged way, don’t try and run this one on your own. While we refer to a basic will in our business as a Simple Will, it doesn’t mean setting up your estate is actually simple.
What we can tell you is “if there is a WILL, there is a way…”
I am Dave Kutcher, a retired Marine Corp Captain and founder and owner of Kutcher Financial Services in Eagle River. We are on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio. Kutcher Financial Services, 10928 Eagle River Road; Eagle River, AK 99577, (907) 795-7452.
