by Ruthann M. Davis
You have worked hard all of your life, carefully saving and investing your assets for your future needs. Isn’t it important to leave a clear plan for the transfer of those assets to your loved ones and cherished causes?
Unfortunately, many of the same people who work so hard accumulating a comfortable nest egg for their retirement years fail to leave a plan for the distribution of those assets at their death. This failure to plan often causes confusion, pain and resentment among family members and can result in the distribution of your hard-earned money in a manner that was never intended.
If you haven’t taken the time to have your Will drafted – and nearly half of the adults in the United States have not – the Wisconsin state statutes will dictate where those assets go upon your death. Once you die, there can be no modification of this plan. Just remember that these statutes have not met you. They do not know whom you would like to serve as guardian for your minor children or whom you would like to serve as the personal representative of your estate. They assume your children are able to receive their inheritance outright at the tender age of eighteen. They do not know what special considerations you may wish to give the people and causes that are important to you. In other words, this “one size fits all” plan may not fit you at all.
I am often asked about Wills that come in a software package or kit. “Are these good enough?” is the real question being asked. The simple answer is “I don’tknow.” I have seen some packages that include the requisite language to be valid in Wisconsin — others do not. (Interestingly, the one I reviewed that was not valid in Wisconsin had in large letters on its cover “Valid In All 50 States!!”)
However, the main problem with these package Wills is that “you don’tknow what you don’tknow.” In other words, the person completing the form often does not have a working familiarity with legal terms, nor does he or she fully understand the consequences of the decisions he or she is making. A few years back, I was asked by a friend to review her self-drafted package Will. She had checked the box that gave all of her assets to her spouse, if living, and if not living, to the children of the marriage. Sounds clear, right? The problem is that she had been married before, and had two adult children from her prior marriage. By signing the package Will, she had inadvertently disinherited two of her children. Clearly this is not what she had intended. In addition to the heartache she may have caused her “omitted” children at her death, the expense in attempting to clear up this ambiguity at her death would far outweigh the expense of having had an attorney draw up the Will.
Another common alternative is to handwrite a “Will” and put it on the kitchen table just prior to leaving on vacation. This handwritten note often will list who is to raise the children upon death. Sometimes it disposes of property or assets. Sometimes it is even notarized. Again, I am asked the question “Is this good enough?” Probably not. The State of Wisconsin has very specific execution requirements for a Will. Holographic (handwritten) Wills are generally not valid here. Therefore, it would not be admitted into court and would not be used to determine who gets the deceased’s assets upon death. The court might examine the document as one example of intent as to the guardianship of the children — but since the document is not properly executed, its validity is suspect and the court may choose not to consider it at all. I would hope most parents love their children too much to take this sort of risk.
Having a Will gives you maximum flexibility in determining who will receive your assets when you die. Your Will is personally crafted to suit your individual desires, financial and family circumstances, and gives due consideration to the people and causes you love and wish to benefit. You may provide for the special needs of your spouse, children and other loved ones. You may also make the decision to leave a lasting legacy to the charitable causes that are important to you or the organizations that have had a positive impact on your life. These final decisions are just too important to ignore.
A practicing attorney for 24 years, Ruthann Davis is currently in private practice at McGrane-Sargent & Davis, LLP, in Elm Grove, focusing exclusively on estate planning.
Community Memorial Hospital’s long-term strength and vitality have always depended on the many friends who believe in the hospital’s importance to the community. Their planned gifts are an investment in the health and well-being of future generations.
There are a number of simple, convenient options for a planned gift. Naming a charity the beneficiary of a life insurance policy is one of the easiest ways to make a planned gift. A bequest in your will is another simple step that can significantly reduce estate taxes and allow you to make a larger gift than you could make during your lifetime. A charitable gift annuity will ensure fixed annual payments for life, partly tax-free, when you make an irrevocable contribution of cash or securities. You can designate the Foundation as a recipient of all or part of an IRA or other retirement benefit, avoiding estate taxes your heirs would otherwise owe.
You can direct your gift to the program or service area most important to you, or allow it to be used where it is most needed. Your gift, of any size, will make you a member of our Evergreen Society, honoring those who have included Community Memorial Foundation in their estate plans. Talk to your attorney or financial advisor about the most advantageous giving option for your situation. For more information, call us at 262.257.3769.
Community Memorial Foundation promotes and enhances the health of all individuals in our community through the development and management of resources in collaboration with the mission of Community Memorial Hospital.
The articles in LifeTimes are for information only. Talk to your tax, financial or legal advisor to make decisions best for your own situation.
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