Today is the Deadline for an August 1 Wedding; Plan for the Future

Today is the last day you can make application for a marriage license in order to be married on August 1.  This is because there is a 5-day waiting period on all applications for marriage.  As same-sex couples are now legally allowed to tie the knot, they will be able to receive treatment under the law that is equal to different-sex couples.  In all marriages there will be ups and downs and certain life events that should be planned.  Ben Franklin said “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”  This certainty should be planned for couples that choose to raise children.  The planning for death is never an easy topic to broach, but planning will help your loved ones.

What happens to life insurance and retirement benefits when I die?

If you have a Will, certain property or benefits may be distributed to your spouse or others even though it is not mentioned in the Will.  Typically, life insurance, retirement benefits, joint tenancy property, and property in a “living trust” are distributed directly to the beneficiaries named in the policy, plan, or trust.  If you own certain property specifically as a “joint tenant” with others, that property will go directly to the other joint tenants who are alive after your death, without regard to how you have distributed your estate in a Will.

 

Laws change. Make sure you review your Will.

Once your estate plan is completed you should review it every couple of years to make sure you are getting the maximum benefit in light of changed laws.  Further, you should also review the document when there is some major change in your life.  There are reasons to have an estate plan above the care of your children and making sure that your things are given to specific people.  One reason is to lessen the estate tax burden.  Contact me whether you are at the initial stage of estate planning or need a review of your current estate plan. 

So I've got a Will, but what if circumstances change?

A Will remains effective until it is changed or revoked.  I recommend if you have a Will that you periodically review the Will to ensure it provides for your family as planned or to address new or changed circumstances.  If your Will does not include changes in your life that occurred after the Will was created, the Will may not accurately reflect how you would want those circumstances addressed at your death.  You should consider reviewing and changing your Will when you marry or divorce, if there is a birth or death in the family, a named guardian for you children dies or is no longer available, the value or type of your property changes significantly, or you move to another state.

If I have a Will, does my family avoid probate?

Not necessarily.  Probate is a court proceeding that manages and settles your estate.  If there is property to be administered or taxes to be paid, the existence of a Will does not necessarily avoid probate nor does it increase the expense of the probate process.  A Will is basically a road map or set of instructions for the court.  However, if all of your property is held jointly or in trust probate may not be necessary after your death.  Probate is not necessarily a process to avoid. 

What Instructions Can I Provide in my Will? Can I Refuse to Provide for Some Members of My Family?

You can provide little instruction or very detailed instructions in your Will.  Usually, though, a Will provides instructions for the care of any children and also names a "personal representative" to manage and distribute your estate after you die.  The personal representative, which can also be legal entity, gathers your property, pays any debts and taxes, and distributes the balance of your estate to the people or organizations you have named in your Will.

Specifically excluding a person from inheriting part of your estate is called "disinheriting."  A married person cannot disinherit a spouse without the spouse’s consent. You may specifically exclude or "disinherit" a child as long as you are clear about it in the Will so that the disinheritance does not appear to be a mistake.

What Happens if You Die without a Will?

If you die without a Will, Minnesota law determines who receives all or a portion of your estate. Though there are exceptions in the law, the balance of your estate would usually go to your spouse, if your spouse is still alive. If your spouse died before you died or you did not have a spouse, the balance of your estate would go to any children. Generally, if you are not survived by a spouse or children, Minnesota law would distribute the balance of your estate to your parents, siblings or cousins, though it depends upon who among your legal heirs are still alive at the time of your death.  If you have no surviving family and die without a Will, the balance from your estate would usually be paid to the State of Minnesota.

What is required to create a Will?

While each state may have different requirements for creating a valid Will, a valid Will in Minnesota must be a written document signed by a person who is at least 18 years old and of "sound mind." In addition, two witnesses must also sign the Will indicating that they witnessed the person's signature or were present when the person making the Will acknowledged that he or she signed the Will.  An attorney can assure that the requirements to make a valid Will are strictly followed.

What does a Will do?

A Will typically accomplishes two primary things.  First, it directs who will receive your "estate" after your death.  Second, it provides instructions about what should happen after your death, including who should care and provide for your children or dependents.  An "estate" includes furniture, jewelry, cars, bank accounts, business, property, and real estate that you own.  In a Will you can direct who is to receive a portion or all of your estate.