I just want a simple will! (Common Overlooks)

The most common request in estate planning is a Simple Will. Someone going to an estate planning attorney, and just wanting what they want. This article will cover the commonly overlooked matters.
The best way to approach this subject is with a scenario:
Jack is married to Jill, and they have two kids over the age of 18. Jack wants to leave everything to his wife and Jill everything to her husband. Simple!
The items that complicate: What is being left?
- The home Jack and Jill live in
- Rental Property
- Retirement accounts, such as an IRA, 401(k), 403(b), HSA, and Pension
- Bank Accounts
- Vehicles
- Stock Portfolios
^ If the above are the items that complicate, what goes easily with a simple will? Keepsakes, Jewerly, Momentos, Cash in hand, assets NOT already set up to transfer automatically, etc.
Lets break each item into HOW it complicates:
- The home Jack and Jill live in
- Everything depends on who the house is deeded to!
- Many spouses may acquire the home prior to marrying, having only one spouse on the deed.
- Alternatively, if one spouse is unemployed at time of home purchase, the working spouse may be the only spouse on the deed.
- A property deeded to BOTH spouses, JOINT, "with rights of survivorship" is the BEST scenario. A will and probate court is not necessary.
- Rental Property
- Rental properties may be in one spouse's name OR the property may be deeded to a business, that is only "owned" by one spouse. The issue, the Will is for a Person, it would not directly affect a rental owned by a business.
- Retirement accounts, such as an IRA, 401(k), 403(b), HSA, and Pension
- The accounts are owned "individually," by one spouse or the other. A will and probate court is not necessary BECAUSE each retirement account already has a "Designated Beneficiary."
- Bank Accounts
- A bank account might ALREADY transfer at death, if a TOD/POD arrangement was set up, making a Will not necessary. Automatic transfer is more ideal than Slow Transfer in Probate Court. The bank account may also be a JOINT ACCOUNT, making the spouse able to immediately access.
- Vehicles
- Always a pain to do anything with the DMV!
- Stock Portfolios
- The Stock Portfolio are either owned "individually" or "jointly." A will and probate court is not necessary BECAUSE each Stock Portfolio already has a "Designated Beneficiary."
What if the Simple Will says one thing and the asset says another?
For instance, a Retirement Account has 1 child as the Beneficiary upon Jack's Death. The Simple Will stated to leave EVERYTHING to Wife, Jill. What happens? the 1 child receives the retirement account as it was created while Jack was alive and takes priority. The Will "activates" later in Probate Court, but the retirement account would already belong to the 1 child.
What should I do then?
Do a Simple Will, HOWEVER consider a review of all Asset Beneficiary Designations.
A Simple Will is not the end-all, be-all solution. It is the weakest of Estate Planning/Probate tools. Apart from Asset Beneficiary Designation, consider alternatives, such as a:
- Trust, great location for a home, life insurance proceeds, managing retirement accounts for those left befind, etc.
- Updating the Deed to a home or doing a pour-over will
- Adjust business holdings, especially those that are income producing
What are complications to the Family Structure in the above scenario:
- If both Spouses pass at the same time, and they leave all items to one child over the other.
- If one spouse wishes to leave everything to one child versus the other
- If one spouse wishes to leave everything to the other spouse "for the living spouse's life," then then to one or both children
- If one spouse adds Siblings into their estate planning, or a sibling's children.
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