A will is one of the most familiar estate planning documents, but many people put off creating one because they assume their family will simply know what to do.
Unfortunately, good intentions do not always create clear legal instructions.
When someone dies without a valid will, they are generally considered to have died intestate. State law then determines how property that must pass through probate is distributed.
The exact rules vary by state, family structure, and the way property is owned.
That means the result may be very different from what the person would have chosen for themselves.
State Law Becomes The Default Plan
Without a will, probate assets are generally distributed according to the intestacy laws of the state involved.
Those laws typically prioritize certain family relationships, but they do not know anything about personal relationships, family dynamics, or the wishes someone may have discussed informally.
A will gives someone the opportunity to put important instructions in writing instead of relying entirely on the default rules.
A Will Does Not Control Everything You Own
One of the most important things to understand is that a will generally controls only certain property that becomes part of the probate estate.
Some assets may pass another way.
For example, property with a valid beneficiary designation, certain jointly owned property, transfer on death arrangements, and assets properly held in a trust may pass outside of the will.
That is why estate planning usually involves more than simply creating one document.
The ownership of property, beneficiary designations, trusts, insurance, and other arrangements should be considered alongside the will.
Minor Children Create Another Important Question
For parents of minor children, a will can also provide an opportunity to formally nominate the person they would want considered as guardian.
The court ultimately determines guardianship according to applicable law and the child’s best interests, but a written nomination can provide important evidence of the parent’s wishes.
Without that guidance, family members and the court may be left trying to determine what the parent would have wanted during an already difficult time.
Planning can also address a separate question:
Who should manage money or property intended for the children?
The person raising the children does not necessarily have to be the same person responsible for managing inherited assets.
A trust or other planning arrangement may provide instructions for how money should be managed until the children reach the ages or milestones established in the plan.
A Will Is Important, But It Is Usually Part Of A Bigger Plan
A will can provide valuable instructions, but it should generally be considered alongside the rest of an estate plan.
Powers of attorney can address financial decisions during life.
Healthcare documents can identify decision makers during incapacity.
Trusts may help manage certain property during life and after death.
Beneficiary designations may control assets regardless of what the will says.
The goal is not simply to create a document called a will.
The goal is to make sure the different parts of the plan tell a consistent story about who should act, who should receive property, and what should happen when circumstances change.
Planning Replaces Assumptions With Instructions
Estate planning cannot remove every difficulty a family may face after a death.
What it can do is replace many unanswered questions with decisions that were made ahead of time.
A clear plan gives the people left behind something much more useful than having to guess.
It gives them direction.
This article is provided for general educational purposes only and is not legal, tax, or financial advice. Intestacy, probate, guardianship, and estate planning laws vary by state and individual circumstances. Consult the appropriate licensed professional when individualized advice is needed.
