Tuesday, February 17, 2015

More on Dying Intestate

In our last blog post, we discussed the importance of estate planning for millennials and mentioned that dying intestate (i.e. without a Will) is a dangerous proposition. This blog post will provide more information about dying intestate:

            So what actually happens if you die without a Will? We have provided what the “intestate Will” would look like if it were written out (provided in full form below). For your convenience, here are some of its “highlights”:

-          Predetermines legatees and distribution of monetary assets and tangible personal property (no individual preference)

-          Fails to provide for members outside of your immediate family, provided they are living

-          Fails to provide for individual preference or for efficient asset distribution to children (both when they are minors and when they reach the age of legal majority)

-          Does not allow for choice of the appointment of Personal Representative(s)

-          Does not allow for choice of the appointment of a Guardian for minor children

-          Does not account for special support circumstances

-          Potentially liquidates property of personal or familial value

-          Requires court order for funeral and burial/cremation expenses beyond a certain amount

-          Does not allow for personal preference regarding the payment of tax or debt burdens

-          Fails to provide for an unmarried partner

-          Fails to protect assets from an estranged or remarried spouse

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Last Will and Testament

of

John Smith, Intestate

 

I, John Smith, of the State of Maryland, being of sound mind and memory, do hereby publish this as my Last Will and Testament:

FIRST

If none of my children are minors, I give my spouse Fifteen Thousand Dollars ($15,000). Regardless of the age of my children, I give my wife Ten Thousand Dollars ($10,000) for her personal use as her family allowance. If I have unmarried minor children, I give each of them Five Thousand Dollars ($5,000) to the guardian of their property or a parent or grandparent with whom they live as their family allowances.

SECOND

I give one-half (1/2) of the balance of my estate to my surviving spouse and one-half (1/2) to my children.

I appoint my wife as guardian of the property of my minor children, but I acknowledge that if the assets to be distributed to a minor child of mine exceed Ten Thousand Dollars, court involvement will be required to determine how those assets will be managed.

I also ask the Orphan’s Court to determine if a performance bond should be posted to guarantee my surviving spouse or other personal representative exercises proper judgment.

As a final safeguard, my children shall have the right to review the financial records of my surviving spouse

When my children reach the age of eighteen (18) years, they shall have full rights to withdraw their respective shares of my estate.  No one shall have any right to question my children’s actions on how they decide to spend their respective shares.

THIRD

If my spouse predeceases me, I direct the court to choose a guardian for my children.  If any child has attained fourteen (14) years, the court may appoint the guardian chosen by such child.

FOURTH

Should my spouse remarry, their second spouse shall be entitled to take a one-third (1/3) share of everything my wife possesses, or a one-half (1/2) share if there are no surviving children.  The second spouse shall have the sole right to decide who is to get his/her share, even to the exclusion of my own children.

FIFTH

Under existing tax law, there are certain legitimate avenues open to me to lower death taxes.  I prefer that my estate’s assets be used for governmental purposes rather than for the benefit of my wife and children.  I direct, therefore, that no effort be made whatsoever to lower taxes so that the government may benefit substantially from my death.

SIXTH

I ask the Orphan’s Court to appoint either my wife or my children over eighteen (18) years old, as it may decide in its discretion, to handle my estate and to be my personal representative.  As a safeguard, I direct that my personal representative file a performance bond to guarantee that the personal representative do everything as should be done.

SEVENTH

Unless the Orphan’s Court approves otherwise, I direct that no funeral or burial expenses in excess of ($5,000 for a small estate or $10,000 for a large estate) be paid for my funeral or burial from my estate.

EIGHTH

I specifically disinherit any friends and other worthwhile causes because only my family members, as outlined above, will inherit my estate.

 

IN WITNESS WHEREOF, Ihave et my hand to this My Last Will and Testament this ____ day of ___________________, 20__.

 

          _________________________

 

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