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(Part of a series of articles on charitable giving and the Union County Foundation by David Vollrath - Executive Director) How many times have you heard, read, or been told of the importance of having a will? The wisdom of having a proper will is rightfully seldom questioned, yet most of us probably couldn’t state the advantages and disadvantages associated with a simple will. Today’s article will outline some of these basic concepts so that you might come away with a nuts and bolts understanding of what a will can and cannot accomplish. Please consult your legal advisor in dealing with these issues. A simple will directs what happens to your assets and possessions upon your death. You can direct property to family members, friends, charities, schools, or any number of other organizations. A will can also designate who is to receive certain sentimental possessions. For example my mother designated who was to receive certain pieces of her personal jewelry. My father designated what was to happen to his cherished WWII medals. Wills afford you the opportunity to thoughtfully distribute your cherished possessions which some times can be as important and as meaningful as the distribution of financial assets. A will, for many people, serves as their only comprehensive estate plan. A full-blown estate plan that includes trusts etc. may not be necessary for the individual whose estate is valued at an amount less than the level that triggers federal estate tax ($1,500,000 through 2005). A will may be all that is necessary for a young healthy person who realistically should live for decades to come. For this person the additional expense related to obtaining a living trust may not justify the added expense. A simple will effectively and inexpensively allows parents to name guardians for their children in the event of the parent’s death. A living trust cannot be used to name guardians for your children; therefore it is important that if you have a living trust that it be linked to a will. As you consider guardians don’t neglect to name backup guardians in case your first choices cannot accept the responsibility for any reason. A will can easily name a beneficiary who is to inherit all your miscellaneous personal property or outline a procedure whereby personal property can be distributed to multiple beneficiaries, perhaps children. A will, unlike a living trust, can put a deadline on creditors claims. The probate court generally places a time limit on creditors demands. When a will is probated creditors generally have just a few months to seek payment on a claim. Generally if all proper procedures are followed an estate will not be liable for a claim filed against the estate beyond the time limit established by the probate court. Some of the basic drawbacks to a will might be the time involved for the probate process to be completed. While this isn’t always a problem, the probate process can take many months to complete thus delaying the transfer of assets to heirs named in the will. Also probate documents are matters of public record, which means your financial records are subject to public review. If this openness concerning your financial life disturbs you then you should definitely consider establishing a living trust. Probate records also have on occasion been know to be a prospecting resource for enterprising business people. One last point regarding wills is not to forget that many assets (retirement funds, life ins.etc.) are distributed outside of your will to the beneficiaries named on the account documents. Failure to understand this important point can result in estate distributions inconsistent with the intent of the deceased. The Union County Foundation encourages you to consider your present and future charitable goals. The Foundation is equipped to help you achieve these goals by providing: planned giving and estate planning resource information, charitable gift annuities/life income plans, and a broad array of charitable choices. The Union County Foundation encourages you to consider your present and future charitable goals. The Foundation is equipped to help you achieve these goals by providing: planned giving and estate planning resource information, charitable gift annuities/life income plans, and a broad array of charitable choices. Please call us at 937-642-9618, email us at commfounduc@imetweb.net, or stop by our Marysville office at 126 N. Main St. We are committed to helping you…. "preserve your footprint in time." |
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