Articles

When a Will is Enough - by Vaughan de Kirby

This is a very important question, and it gets at one of the most basic issues in estate planning. In my experience, a general rule is that—in estate planning as in life—it’s always a good idea to err on the side of caution. In other words, “too much” estate planning is always better than not enough. The consequences of insufficient planning can be grave: children without a clear guardian, painful disputes among family members, ruined relationships, wasted resources, high taxes—the list goes on and on. However, for certain people, a simple will is enough to meet their needs. If the following description applies to you, you’re probably one of those people.

• You’re healthy and relatively young.
Because you’re not likely to die for decades, you will have time to update your will or do more extensive estate planning as you get older and acquire more assets.
• You don’t have children.
Many of the more complicated tools of estate planning—Living Trusts, for example—are best suited for people who need to plan for the financial future of their entire family if they were to pass away. If you are unmarried, or if you and your spouse don’t have any children, many of the advantages of more extensive estate planning wouldn’t apply to you.
• You do have children, but your primary goal is to ensure that they are well cared for in the event of your death.
The knowledge that there is a specific person who would care for your children—a person you know and trust, and someone who is willing and able to do the job—can provide parents with much-needed peace of mind. If your primary goal is to name someone who would care for your children and ensure that the money you leave them is well spent, a will can meet your needs with a minimum of complication.
• You don’t have many assets.
If you don’t have many assets, especially if you don’t own any real estate, a will is probably enough. For one thing, if you don’t own many assets, avoiding probate is less of a concern. Also, if your total estate is less that $2,000,000, you don’t need to worry about how to avoid the death tax.

If this describes your situation to a tee, then you are probably safe in assuming that a simple will is sufficient planning for the time being. However, this list is based on generalizations and should not be treated as a group of hard-and-fast rules. By far the best way to determine what makes the most sense for you and your family is to discuss your situation with a Personal Family Attorney.