MONEY MATTERS

Do you have an estate plan?

Whether presenting to groups of individuals or during initial client consultations, I often state, “you need an estate plan; otherwise, the State has a plan for you, and you may not like what it says.” What I mean by the comment is if an individual dies without leaving a Last Will and Testament (dying intestate, then State law dictates (intestate succession) who will receive your probate assets (property not governed by payable on death beneficiary designations or survivorship rights) and in what fractional shares.

For example, assume an Alabama resident passes away intestate, appointed as the personal representative to leaving a spouse and two children surviving. administer a probate estate. The more well known Next, assume the deceased person always believed of these formalities include obtaining a surety bond and intended, as many do, that his or her spouse insuring the non-realty assets of the probate estate, would receive all of his or her property at death. filing an inventory of probate assets with the court Unfortunately, that is not the result with and making a final settlement with respect to the person’s probate assets. In this situation, Alabama intestate MONEY the court. In almost all circumstances, when preparing the will, a person will succession law divides the person’s probate assets in approximately half. MATTERS want to relieve these requirements of the personal representative to minimize The surviving spouse would receive estate administrative expenses and the half of the assets. The other half of the time required to satisfy the formalities. assets would be divided equally between Any estate plan should include the the two surviving children – a vast preparation of an Advance Directive difference from the deceased person’s for Health Care with a Living Will and belief and intention. Therefore, having Durable Financial Power of Attorney. a will to govern the distribution of These documents allow a person to property at death (dying testate) instead appoint someone who will make his or of intestate succession law governing the her healthcare and financial decisions distribution is just one of many reasons if the person is later unable to do so why every individual capable of creating a will needs to do so. David B. Welborn on his or her own. Failure to have such documents could cause a costly and

For those individuals with a minor time-consuming court proceeding in child or child who has been incapacitated since order for another person, who might not be the birth, Alabama law permits such individuals to person the then-incapacitated person would have nominate a guardian for the child in the event named in his or her documents, to be permitted to of death at a time when the child still requires make said decisions. a guardian. Failure to have a will make the If loved ones are to avoid the issues mentioned nomination, when applicable, leaves open the above, then create an estate plan for their benefit possibility of the necessity of a time-consuming and peace of mind. and perhaps costly guardianship court proceeding at the death of the parental guardian, in addition to ~David B. Welborn is originally from Alexander possible litigation among relatives or others desiring City and is a partner in the law firm of Browder & guardianship of the child. Welborn, LLC.

In addition, unless a will relieves them, probate law places numerous formalities on the person