Planning on what will happen after death is a topic not everyone is comfortable with. It's easy to just kick the can down the road and worry about estate planning some other time. Some people put off getting a Will, thinking that their kids will automatically inherit the estate anyway.
But Minnesota law has some rather arcane rules about where assets go in the case of intestacy (no valid Will). Since the intestacy statute cannot begin to anticipate every family situation, it serves merely as an attempt to ensure that immediate family members are not left out of an inheritance entirely. It's a very basic safety net, a crude tool. The law sets forth a hierarchy of who inherits--called intestate succession. Therefore, that safety net may be a far cry from what you would wish to do.
Here are eight reasons why you should seriously consider having a valid and up-to-date Will:
Reason #1: You get to choose your beneficiaries. If you die intestate, the probate court determines where your assets go, based on intestate succession. But the hierarchy of heirs in intestate succession may not be what you want.
However, if you have a validly-executed Will, you can control who receives assets in your estate, and in what shares. Perhaps you want to gift something to a distant relative or friend. Maybe you would like to give some money to a favorite charity. Even if you choose to limit inheritances to immediate family, you might want to give in disproportionate shares, or leave someone out entirely. There are numerous possibilities of how you can distribute assets from your estate, and you need a Will to help ensure that happens the way you intend.
Also, having the beneficiaries correctly identified in your Will can reduce the chance that the probate court will be unable to locate them. If a court cannot locate an heir, those assets that cannot be distributed will be deposited with the treasurer until claimed (escheatment).
Reason #2: You get to choose who is responsible for administering your estate. The probate court will appoint a qualified personal representative to oversee the collection and distribution of your assets, and pay debts. If you have a Will, you can nominate one or more persons to perform those fiduciary duties, and the court will give serious consideration to that input in appointing those nominated persons. But if you die without a Will, the court will make that appointment without any input from you.
Reason #3: The value of your assets. Even if you think you don't have much property now, who knows what your assets will be years from now? You might acquire real estate, earn more money, inherit from a relative, buy new cars, boat, and so forth. Having a well-crafted Will can provide for your future growth.
Reason #4: Life can throw you a curve ball. We're all going to die some day and not many of us like to think about it. That's why it is so crucial to develop a good estate plan sooner rather than later, while you are able to make those decisions with a clear and focused mind.
Reason #5: Making things easier on your family after you die. A Will creates a plan, based on your wishes. Having this plan, and having someone to administer it, will take a huge load off the shoulders of loved ones who will be dealing with grief.
Reason #6: Limit conflict between loved ones. It's not just the big estates that start fights among family members. You might be surprised how many disagreements arise over very modest estates or even individual property items. Lack of direction over an estate is just inviting conflict. Having a valid Will sets boundaries and helps minimize the chance someone will be tempted to take issue with their inheritance.
Reason #7: Peace of mind. Having a valid Will removes the doubt about what will happen after you're gone. You know where your assets will go and to whom. You know that your loved ones will be taken care of. Until then, you can go about enjoying your life and not having to worry about your estate. Of course, when major life changes occur, like marriage, divorce, new children or grandchildren, etc., it's a good idea to revisit that Will.
Reason #8: Getting professional counsel. Setting up an estate plan can be daunting, and you will no doubt have many questions and concerns. Having the guidance of a qualified estate planning attorney can be an enormous help in putting it all together.