Recently a client spoke with me about whether he even needed a will.
He had set everything up so that upon his death his money went to his kids without probate. All of his assets: bank accounts, investment accounts, community deposits, life insurance, and IRA’s either had a joint owner or a beneficiary. As he correctly pointed out all of his money went to the kids without probate. Terrific! So why bother having a will?
To a certain extent he’s absolutely correct – his life savings were going to smoothly transfer to the kids. But, what about his tax refund (to be received after he would die) or the last bits of his pension (to be received after he would die) or his forgotten VA life insurance policy without a beneficiary (to be received after he died). All of those dribs and drabs of money would be payable to his “estate.” And the only way to transfer the funds from his estate to his children would be through probate.
Another problem was that his grandchildren whom he did not want to receive any of his funds. These were the children of his deceased daughter and they no longer were in contact with him. If he died without a will, the grandchildren would “stand in their mother’s shoes” and receive her inheritance.
Without a Last Will and Testament, his children and grandchildren would all have an equal right to serve as the Personal Representative a.k.a Executor. And the grandchildren who are no longer in his would receive a percentage of his probate estate. I’m not sure if he’ll choose to have me prepare a will for him. In fact, I’m not sure he’ll permit anyone to prepare a will for him. However, I am certain that if he signs a will, he will have done the kindest act for his children by making his wishes clear and helping them avoid a lot of unintentional chaos.