Barrett Legacy Estate Solutions

While estate planning allows you the freedom to choose who will receive your money and property upon your passing, struggling to determine who should receive your accounts and property at your death may prevent you from starting the process. You should not let this stop you from creating an estate plan, however. Whether it is naming a person or organization as your beneficiary in your last will and testament (also referred to as a will) or in a revocable living trust, making this important decision and having it officially documented is the best way to ensure that your wishes will be carried out.

 

What will happen without an estate plan? If you do not formally write out your wishes, the state will use its own default estate plan, outlined in state laws called “intestacy” rules, to give away your money and property. The exact amounts and order of priority for who will receive your money and property vary by state. Still, in general, the state’s plan will first give your money and property to your surviving spouse, then to your descendants (children or grandchildren), then to your parents, and then to your siblings and their children (your nieces and nephews), depending upon who has survived you.

 

Most importantly, the state—not you—decides how much each person will receive. For example, if you have more than one child, each child will receive an equal amount of your money and property. Depending upon the age difference between your children, this may not be the fair treatment you would have wanted. An older child will get their share immediately if the child has attained the majority’s age in your state (usually eighteen or twenty-one). However, a younger child (who has not attained adulthood) will have their share managed by a court-appointed individual, called a conservator or guardian, until the child becomes a legal adult. Additionally, your younger child may have to use his or her share to pay for things such as a first car or college tuition, whereas you may have been able to provide those items for your older child, who will now be able to use his or her share for other purposes.

 

If you are unmarried with no children, your money and property will be given to your parents. Depending on your parents’ relationship, and assuming that they survive you, these may not be the people you intend to leave your money and property to. Also, if your parents are older, receiving a large amount of money or property from you at your death could cause issues for them if they receive government benefits such as Medicaid for nursing home care.

 

If you are unmarried and have no children or living parents, your siblings will receive your money and property. Hopefully, this is what you would have wanted because this is the result. If this is not the outcome you want, you need to consider some other options.

 

Who are some other possible recipients? Now that you know who will receive your money and property, if you do nothing, consider who you do want to receive your money and property. With proper estate planning, you can help ensure that your money and property are given to those you want and used in the way you want. As alternatives to the individuals who may receive your money and property under the state’s plan, there are some other options for you to consider:

 

Important Points to Remember

Taking the first step can be hard, but we are here to help you. There are many reasons why you may be postponing your estate planning. We are here to help you navigate your fears and concerns and create a plan that addresses them and allows you to take control of your money and property, leaving a legacy designed by you, not the state. We are available for in-person and virtual consultations. Please contact us today.