Monday, October 5, 2015

Dying Without A Will: 34% of Americans Do Not Have a Valid Will

Image by M. Gustafson Gervasi, 2015
"Show of hands, who here does not have a will?"  A standard question I pose to audiences when asked to speak on the basics of estate planning.  Usually one-third to half of the audience raises his or her hand indicating that no, they do not have a will.

A recent reported stated that while 69 percent of Americans have given serious consideration to setting up a will, only 34 percent actually have a valid will.  And of those that know it is important, but have not acted, 95 percent say it is because they lack the financial know-how, and not that that topic of death is too taboo.

Even as an estate planner the 34 percent shocked me, I would have guessed about 48 to 49 percent of Americans have not created a will.  But I would disagree with the wording in the report that only 34 percent of Americans have a will.  Here is why: "Guess what, those of you with your hands up -- you do have a will.  One the State Legislature wrote for you.  If you won't sit down and write one, they did one for you as a back-up.  Some folks may agree with their assumptions, otherwise will not." And then I show them a flow-chart of Wisconsin's intestacy statute.  The law that says where your probate assets will go if you have not drawn up a will (or other means of distribution: trust, TOD Deed, joint ownership, etc.).  So one does not really die with a will, but rather they die without having stated his or her wishes. They die with a default will.  It might be fine, it might be horrific.  Take control, and put your wishes in a legally binding format.

1 comment:

Bilal Hassan said...

I feel a lot more people need to read this, very good info!......
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