Why Everyone Needs a Will
By: Morris J. Mizrahi
When a person dies it is a great tragedy for the surviving family. Worse still if the deceased left this world without a will. The family is left without a loved one made infinitely worse because without a will the state imposes their harsh rules on assets the deceased left behind. This article will deal with the consequences of dying without a will along with a video describing the looming federal estate tax cliff.
The technical term for dying without a will is dying Intestate. The state the deceased lived in becomes the arbiter of assets left behind. The deceased’s loved ones become powerless with the state imposing time consuming probate and decisions about who gets what of the assets.
Let’s say for example the deceased leaves behind a wife and children. Instead of having the wife inherit all assets tax free through the unlimited marital deduction, the state could unilaterally distribute only some of the assets to the wife and instead distribute assets to the deceased’s children. Thus, harming the surviving spouse who may be left without sufficient resources. Also, by arbitrarily distributing assets to the children use the all important federal estate tax exemption, which as the video demonstrates will go down in 2026. It also gives the still financially unsophisticated children funds that can be lost rather quickly. A double negative in outcome.
There is also no guarantee the State will agree to have the surviving spouse care for minors, powerless.
Check out the attached link that describes the future of the federal estate taxes. For the reasonably wealthy this will provide a shot in the arm to begin planning Wills and beyond.
https://www.youtube.com/watch?v=3c-JgVxOVPs
Morris Mizrahi is a Chartered Life Underwriter® and Accredited Estate Planner®
