My husband and I are in our 50s and have no kids. We have $2 million. Do we need a will?
“We have no debt and own our primary home, a vacation home, as well as my mother’s home in another state.”
Having a will is essential for anyone, regardless of age or family structure. In this case, the couple's situation is straightforward, with no debt and multiple properties. Without a will, the distribution of their assets after death may not align with their wishes. For instance, if one spouse passes away, the surviving spouse may not automatically inherit the vacation home or the inherited home from the wife's mother.
In the absence of a will, state intestacy laws will dictate how assets are distributed. This can lead to unintended consequences, such as the vacation home or inherited home going to distant relatives or being subject to lengthy and costly probate proceedings. For a couple with significant assets like $2 million, having a will can help ensure that their wishes are respected and their loved ones are taken care of. It also allows them to appoint an executor to manage their estate and make decisions on their behalf.
What's worth watching next is how this couple structures their estate plan. They should consider not only a will but also other documents, such as a power of attorney and a living trust, to ensure their assets are protected and distributed according to their wishes. Additionally, they may want to review their beneficiary designations for retirement accounts and life insurance policies to ensure they align with their overall estate plan. Consulting with an estate planning attorney can help them create a comprehensive plan that meets their needs and provides peace of mind.
Originally reported by marketwatch.com. Trade-News adds analysis for finance & markets readers.